February 25, 2014

San Francisco Real Bay Area beats New York for most expensive housing

Hello.

For years, this site and its fine readers have yearned for the day that the San Francisco Real Bay Area would eclipse New York for most expensive housing. It has been a dream that we have all pined for. There were good times, there were bad times, but for better or for worse we stuck together in the hopes of realizing this dream.

I present to you, this:

Here’s How Much Money You Must Earn To Buy A Home In 25 Big US Cities

  1. CLEVELAND: You’d have to earn at least $19,435 to buy an average home. (All they have is the Rock and Roll Hall of Fame. Big whoop.)

  2. CINCINNATI: You’d have to earn at least $22,227 to buy an average home. (Jerry Springer was mayor.)

  3. ST. LOUIS: You’d have to earn at least $22,398 to buy an average home. (Arch this!)

  4. ATLANTA: You’d have to earn at least $24,391 to buy an average home. (Because everyone is a peach picker.)

  5. TAMPA: You’d have to earn at least $24,651 to buy an average home. (It’s not Orlando!)

  6. ORLANDO: You’d have to earn at least $28,298 to buy an average home. (It’s not Miami!)

  7. SAN ANTONIO: You’d have to earn at least $29,305 to buy an average home. (Riverwalk? Really?)

  8. DALLAS: You’d have to earn at least $29,751 to buy an average home. (Meh. Oil.)

  9. HOUSTON: You’d have to earn at least $31,299 to buy an average home. (Galleria is meh.)

  10. CHICAGO: You’d have to earn at least $32,389 to buy an average home. (Too much wind.)

  11. PHOENIX: You’d have to earn at least $32,812 to buy an average home. (Arizona.)

  12. MINNEAPOLIS: You’d have to earn at least $33,800 to buy an average home. (Cold.)

  13. PHILADELPHIA: You’d have to earn at least $36,836 to buy an average home. (Everyone is angry.)

  14. BALTIMORE: You’d have to earn at least $41,155 to buy an average home. (Too many crime shows.)

  15. SACRAMENTO: You’d have to earn at least $42,832 to buy an average home. (Sacramento.)

  16. MIAMI: You’d have to earn at least $43,918 to buy an average home. (Too much cocaine.)

  17. PORTLAND (OR): You’d have to earn at least $45,872 to buy an average home. (Sometimes I just want a twinkie)

  18. DENVER: You’d have to earn at least $48,123 to buy an average home. (Air is too thin.)

  19. SEATTLE: You’d have to earn at least $59,130 to buy an average home. (Too much flannel.)

  20. WASHINGTON, D.C.: You’d have to earn at least $62,810 to buy an average home. (D.C.)

  21. BOSTON: You’d have to earn at least $63,673 to buy an average home. (Not enough smart people compared to the Real Bay Area.)

  22. NEW YORK CITY: You’d have to earn at least $66,167 to buy an average home. (Not Real Bay Area.)

  23. LOS ANGELES: You’d have to earn at least $72,127 to buy an average home. (Too much traffic… until the Bay Area beats LA)

  24. SAN DIEGO: You’d have to earn at least $81,570 to buy an average home. (Too far south.)

  25. SAN FRANCISCO :You’d have to earn at least $115,510 to buy an average home. (The best place in the world.)

That’s right everyone! You need to make 75% more money in San Francisco Real Bay Area, to be able to afford a home compared to New York City.

We.

Have.

Won.

I knew this could happen, and it did. <sheds a tear>

Now that this has happened, what should Burbed’s future direction hold… I mean… how should Burbed pivot?

Comments (25) -- Posted by: burbed @ 5:09 am

25 Responses to “San Francisco Real Bay Area beats New York for most expensive housing”

  1. must walk 2 work Says:

    Real Estater- Where and what would you recommend buying given
    1) work in San Jose/Sunnyvale area
    2) (young) family of 5
    3) budget up to $775,000?

    TIA.

  2. Real Estater Says:

    To #1, Santa Clara.

  3. Joe Says:

    I’ve lived in Sunnyvale for over 7 years, don’t buy here, it’s over-priced.

  4. Dewane Says:

    Boo-yah! It’s just ridiculous here. My wife is Chinese and we’re looking for a place near where her acupuncture clinic is. We saw a place on Piedmont, on a busy intersection, on the second floor, a two-bedroom condo for $415,000. Nothing had been done to this place to make it presentable, in fact there were still family photos and furniture in the condo. No new paint and those horrible particle board cabinets in the bathroom. A few weeks later, it’s gone. A three-bedroom place built in the ’50s in the smelly part of Milpitas is $685,000. I think we’ve all lost our minds, tell you the truth. The outlying areas, like Tracy or Mountain House, are still cheaper than the first bubble, but then you have to live there. It’s tough, I tell ya, it’s tough (adjusting tie Rodney Dangerfield style).

  5. Bob Says:

    This should be commemorated with a new holiday or somethin’.

  6. must walk 2 work Says:

    I know it looks overpriced, but if you’ve been on this blog for a long time, you will remember how Real Estate urged everyone to buy (circa 2009-2011). Everyone shouted him down, and clearly, he was vindicated. Wish I’d listened :(

  7. must walk 2 work Says:

    Arrgh–

    Real Estate –> Real EstateR

  8. Dewane Says:

    I’ve been reading this blog for a while, and I believe he says that 100% of the time (correct if wrong and I don’t mean anything personal). So sure, sometimes the “buy now” people will be right, just as the “jeez we are in a horrific bubble” people are correct at times too. Currently, I’ve lean toward the frothy area.

  9. DonnieJ Says:

    Even a broken clock is right twice a day…….

    If you had bought in 2010, where would you get the loan?

    The economy crashed, millions of people lost their jobs, do you think you would be throwing your last $100+k at a downpayment while wondering if either of the bread winners would have a job in the coming months?

    Besides, even back then, most were forclosures and shortsales. The first requiring all cash at the courthouse steps, the second requiring laborious and painstaking waiting while the bank figures out if the offer was just, while the homeowners damaged the house and stripped it of all the fixings.

  10. Alex Says:

    Buy now or be price out forevah, bitchez!

    Housing never goes down. Always up. Here in the Real Bay Area, it goes up 20% a year!

    Booya!!

  11. Gabe Sanders Says:

    I love Sand Francisco and I can see why it’s so expensive. Maybe in my next life……..

  12. waiting_for_the_fall Says:

    What do you do once you’ve reached the peak and there’s no where left to climb. The only two options: a slow slog back down or a quick drop with a crash landing.
    Which is it going to be this time?

  13. Real Estater Says:

    >>What do you do once you’ve reached the peak and there’s no where left to climb. The only two options: a slow slog back down or a quick drop with a crash landing.

    Would someone please show this real estate virgin how to peak?

  14. BayAreaRenter Says:

    “You’d have to earn at least $115,510 to buy an average home”

    I wonder how they came up with that number for San Francisco? Last I checked, you cannot find anything in the ‘average’ market that is less than one million. So I would assume you would actually need more like $300,000 in earnings to afford a property. I guess two high level tech salaries could swing it, although it wouldn’t be easy.

  15. Jb Says:

    it may crash, some day, somewhere, although it won’t really splinter in the RBA in the way a place like Mountain House – or even San Ramon – did. So if you are in for 10+ years and can wait out a bit of a down, buy NOW. Or be priced out forevah and evah until you win the lottery. Or something. Or move to the land of snow and ice and schools with 15 kids in the kindergarden classes like we did.

  16. InTheBiz Says:

    Prices go down everywhere, even in Palo Alto. The difference is how long they’re down, and how much they’re down, and how quickly they recover. BTW you’d have to pay me $28,298 to live in Orlando.

  17. InTheBiz Says:

    Sorry, meant to say “more than $28,298″. Shouldn’t stay up past my bedtime. Here’s what paying a premium for a strong brand does for you: Palo Alto prices peaked in early 2008, began to decline in late 2008, started to recover in 2009, and top-end Palo Alto prices had exceeded their previous 2008 peak by early 2011. These days $1.5M will get you a small old hammered home on a busy street. Then there’s an area like Evergreen San Jose, “the new Cupertino”, maybe 30 minutes from Palo Alto, where $1.5M will get you an almost new palace in a gated golf course community with great schools. Evergreen peaked in 2006, and today that $1.5M house is still worth less than it was worth in 2006.

  18. Tyler Stacer Says:

    In my opinion, there are some apartments in San Francisco, which are exuberantly priced. I was looking for an condo near Palo Alto but ended up buying in San Jose, due to high prices in Palo Alto.

  19. TechGuy Says:

    Best decision I ever made after a decade of living in the Bay Area was move to Texas.

    I can’t even begin to describe the change in standard of living. From living in a small one bedroom apartment in Mountain View to owning a beautiful home with a backyard overlooking the lake.

    And for the record, the women in the Bay Area are ugly as sin compared to the Southern Belles I see around here.

  20. cardinal2007 Says:

    #5
    @must walk 2 work
    Prices were still going down into 2011, I actually looked at some places back in Oct 2011, in hindsight it would’ve been the best time to buy, but my boyfriend/partner said something about trying to renegotiate his loan, and things were complicated as in I would have to move out to get owner occupied financing, he couldn’t move out of his place and rent it out because of provisions on his loan, and he didn’t want to short sell. So yeah, no sale, now those townhomes selling for $320-340k are around $500k, at least my income went up…

    In 2009 those places I think were still around $380-400k, and the sentiment and economy most importantly were crap. 2009 was the height of the recession, you forget, and it wasn’t getting better at the time.

  21. must walk 2 work Says:

    @Cardinal2007

    Thanks — that’s a good point. This huge bounce back looks inevitable in hindsight but in 2009-2010 I thought, like many others, any significant increase was another five years out.

    RealEstater used be a regular on this blog back then and was always flogging the virtue of buying, but I held off in part because I couldn’t afford anything decent even with the price drops.

  22. Dewane Says:

    Mother of Mercy, is this is the end of Burbed? Haven’t had any updates in a while.

    I can’t say that Evergreen is like Cupertino, in any way, shape or form. No businesses in that area, and not many ways to get in or out (Capitol Expressway and, Capitol Expressway). I had no idea houses were so much there, these days, but I can say that about pretty much anywhere I think.

  23. InTheBiz Says:

    I put “new Cupertino” in quotes because it isn’t my description, but it’s accurate enough if you’re talking about highly-regarded schools and the people who love them. You add a half hour to your commute, but if you want high-scoring schools from K through 12 and can’t see spending $1.4M on a tired sixty-year-old rancher, Evergreen is one of your few options (aside from moving out of the area), and it sells for about 60% of what Cupertino sells for. That’s one reason the freeways are clogged and getting more clogged.

  24. nomadic Says:

    InTheBiz, what about Almaden? Closer than Evergreen, but good schools and very popular with “the people who love them.”

  25. InTheBiz Says:

    That’s another choice. There are even some parts of Fremont I don’t mind.


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