Bay Area Housing Affordability Drops to 1 in 5
August 14, 2014 • Posted in Home Price Conditions
According to data obtained from the California Association of Realtors, 20 percent of residents across the nine-county region could afford a single-family home, down from 23 percent in the first quarter and 25 percent in the second quarter of 2013.
This closely mirrored second-quarter trends observed across the state, where the amount of residents who could afford a home declined to 30 percent, down from 33 percent in the previous quarter and 36 percent a year earlier.
Marin, San Francisco, and San Mateo were in a three-way tie for the least affordable of the 26 California counties in which CAR provided breakout data, with 14 percent of residents able to purchase a home. Affordability declined from the first quarter 1 percent in Marin and San Francisco counties while holding steady in San Mateo County.
Affordability decreased or remained static across every Bay Area county on both a quarterly and annual basis. Alameda County tied Santa Barbara and Santa Cruz counties as the second quarter’s second-least affordable, with 18 percent of residents able to purchase a home.
Local residents needed to earn about $158,000 per year in order to afford the median second-quarter home price of $769,590. Bay Area homebuyers could expect to shell out $3,940 in monthly payments, including taxes and insurance.
Bay Area counties took the top six spots for highest median second-quarter home prices, with both San Mateo and Marin counties eclipsing the $1 million mark. They were followed by San Francisco ($963,540), Santa Clara ($899,500), Contra Costa ($760,830), and Alameda ($737,390) counties.