Thinking of buying a home in the Bay Area? You’ll likely need to make at least $250,000 a year to comfortably afford it, according to a new study from personal finance website GOBankingRates.
The study found that in order to afford the median monthly mortgage payment of $4,070, buyers need to earn a salary of at least $250,000 a year. That’s more than five times the national median household income of $60,336, according to the U.S. Census Bureau.
San Francisco, Oakland and San Jose were the three most expensive cities in the study. In San Francisco, buyers need to earn a salary of at least $382,000 a year to afford the median monthly mortgage payment of $6,950.
The study looked at the 100 largest cities in the U.S. and assumed that buyers would put down a 20 percent down payment, have a 4 percent interest rate on their 30-year fixed-rate mortgage and would spend no more than 28 percent of their gross income on their monthly mortgage payment.
“With home prices and mortgage rates on the rise, it’s becoming more and more difficult for buyers to afford a home, especially in high-priced markets like San Francisco and New York City,” said GOBankingRates’ senior research analyst Rebecca Safier.
If you’re thinking of buying a home in the Bay Area, you may need to start saving now.
Is it better to rent or buy in California right now?
As California home prices have increased rapidly during 2020-2021, the monthly cost of paying a mortgage is far more costly than renting a comparable home. In 2022, rising interest rates were the final nail in the coffin, pushing homeownership out of reach. 1 Aug 202
Will 2023 be a good year to buy a house in California?
In 2023, statewide house hunters could find it much easier to find and buy a house in California.
If supply levels continue to rise going forward, the real estate scene will become even more favorable for buyers.
Will California home prices drop in 2023?
The California median home price is forecast to drop 8% to $758,600 in 2023, following a projected 7% increase to $831,460 in 2022 from $786,700 last year.
Home prices statewide and in Southern California are projected to decrease by approximately 7% in 2023 compared to 202
This decrease is likely due to the decrease in demand for housing as a result of the COVID-19 pandemic.
Despite this decrease, the California housing market is still expected to be one of the strongest in the nation.
What will houses be worth in 2030?
According to RenoFi, the average price of a single-family home in the U.S. could reach $382,000 by 2030. This would be an increase of 26%.
In 2030, the average price for a single-family home in the U.S. could be $382,000 according to RenoFi.
RenoFi states that by 2030, the average price of a single-family home could reach $382,000 in the U.S.
I’m Brendan Rivers, and I love all things real estate. I live in sunny Los Angeles and work as a real estate expert. I enjoy helping people find their dream home, and I love everything about the process of buying and selling property.
I’m originally from Boston, and I love spending time with my family and friends there. When I’m not working or hanging out with loved ones, you can usually find me at the beach or exploring new parts of LA.