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The San Diego Union-Tribune recently published an article on the affordability of San Diego homes, specifically about the income necessary to buy a median priced home. Through calculations on a mortgage website called HSH, the median home buyer needs to make a whopping $131K a year to be able to afford a home in our beautiful city.
What has exacerbated the already difficult market?
- The inventory nationwide has recently been sparse. Due to economics, the sale price rises when the demand is not met by the supply. Don't sweat it yet: the supply in some metropolitan areas at certain price ranges is still at normal levels, and the inventory of homes is rising (0.5% in June, according to the NAR)
- The rising costs of taxes and insurance are outpacing buyer's income raises. The San Diego Union-Tribune quotes that a buyer's income would need to raise by 10.58% yearly to keep up.
- The prices just keep rising. With so many millennials still renting, the labor market at a good place, and the economy steadily growing, the sales prices and mortgage rates will continue to be driven higher.
Want to read more? Read the full article here.
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