Report: Silicon Valley’s housing affordability crisis worsens
Less than 25 percent of workers and just 40 percent of households in metro San Jose are able to rent or buy average-priced housing, according to a new report from the Silicon Valley Competitiveness and Innovation Project.
The new analysis underscores some of the region’s long-term affordability trends and the impact on quality of life and business competitiveness. Compiled by Peninsula-based Collaborative Economics, the data show that the average rent in May for a two-bedroom apartment in metro San Jose was $2,917 — and that residents would need to earn $116,680 annually to afford that. Yet the median income in the area was $57,400 for individual workers and $91,500 for households, according to the most recently available statistics, the study says.
Citing data from the California Association of Realtors for the first quarter of 2015, the report says only 44 percent of Santa Clara County households could afford to purchase an entry-level home — defined as costing $833,850, or 85 percent of the county’s median sale price. That percentage shrank to 29 percent in San Mateo County (where an entry-level home was $1.11 million in the first quarter) and 27 percent in San Francisco ($1.15 million).
I don’t know about you, but this is music to my ears. As we all know, the more unaffordable something is, the more exclusive it is – and therefore the better it is. Hermes, Rolex, Ferrari, San Jose.
It’s already so beautiful that that an entry-level home is defined as $833,850 (and it probably requires $100k of work) in Santa Clara- and that includes laggard Gilroy. Come on Garlics, shine! Shine!
Where do you think we will be next year? What will an entry-level home cost? $1M? $2M?