WHAT SALARY IS NECESSARY TO AFFORD THE MEDIAN HOME IN SAN DIEGO? | BY EMILY MCGOWAN
How Much Do You Need to Make to Buy a Home in San Diego
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 rise 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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