Fewer Than 1 in 5 Residents Can Afford a Home in Bay Area
August 9th, 2018Via: Mercury News:
The Bay Area continues to lead the state in shattered home-ownership dreams.
Record home prices and rising interest rates have pushed statewide home affordability rates to a 10-year-low. In the Bay Area, fewer than 1 in 5 residents can afford to buy into one of the nation’s most expensive real estate markets, according to a study released Wednesday by the California Association of Realtors.
…
A typical state resident needs an annual income topping $125,000 to afford a median home priced at $596,000. In Los Angeles, about 3 in 10 households could afford to buy, while about 4 in 10 residents in the Inland Empire could make a purchase.
Bay Area residents find a much starker balance sheet. A household needs roughly $220,000 in income to afford a home at the median price of $1.04 million, according to CAR. After a down payment of more than $200,000, a typical new Bay Area homeowner would have a $5,500 monthly mortgage payment.