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From this article

The cost of homes in the Bay Area is so high, it takes much more than the median income to afford one.

County Residents who own homes (column 1); Income needed to afford a home{+1} (column 2); Households spending over half of income{+2} (column 3)

Alameda 57.4%(1) $148,450(2) 18.8%(3)
Contra Costa 72.0 138,715 18.6
Marin 65.0 218,902 20.5
Napa 62.5 145,408 19.6
San Francisco 39.3 196,878 19.6
San Mateo 63.2 191,768 19.2
Santa Clara 60.6 170,352 17.4
Solano 65.9 103,185 20.7
Sonoma 63.9 124,114 19.5

{+1}With a 5 percent down payment on a median-priced home
{+2}To pay for homes

I don't have the stats right on hand but I can guarentee you the median household income levels for all of these counties are well below what is necessary to meet the income requirments. Last time I looked, Marin had the highest household income and it was somewhere in the ballpark of $164000 a year.



( 2 comments — Leave a comment )
Feb. 15th, 2008 05:03 am (UTC)
Too bad your little housing price study from last year (or the year before?) used Bay Area prices instead of the whole country. You were exactly right-on in predicting the collapse of the housing bubble, but the data source you were looking to for verification of your prediction was/is one of the markets that just keeps going up and up and up...
Feb. 15th, 2008 08:50 pm (UTC)
The Bay Area is still somewhat of a mixed bag at this point. As usual, the long standing maxim - Location, location, location is holding true. The outlying areas of the Bay Area where one can build and build and build and where people streached the most with exotic mortgages are having really big problems and seeing serious price declines. SF and Marin are stil generally doing ok.

Interesting quote from another article on Bay Area housing prices:

"Nearly one-fifth of the properties that did trade hands in the Bay Area last month had been foreclosed upon last year.

'We're going through the painful transition toward pricing that is realistic and we're nowhere near that (yet)," said Christopher Thornberg, an economist and founding partner of real estate research firm Beacon Economics. "Even though your local real estate agent will tell you, it's OK in this neighborhood or it's a wonderful time to buy because interest rates are low, all that's wrong. If you're buying into this market, you're overpaying.' "
( 2 comments — Leave a comment )

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