Housing affordability has deteriorated markedly in Santa Clara and San Mateo counties, with a staggering statistic revealing that merely one in every 805 homes on the market is within reach for families earning $100,000 a year, as highlighted in a recent report from the regional think tank Joint Venture Silicon Valley.
In the last twenty years, there has been a notable increase in housing expenses, leading to a decrease in the affordability of homes in the area. The report highlights that soaring costs have intensified inequalities in homeownership across different racial and ethnic groups, significantly affecting first-time buyers.
The findings indicate that the decline in affordability is prevalent across the Bay Area and California, as various communities grapple with the challenges posed by a limited housing market.
The report highlights that the median price for single-family homes in Santa Clara and San Mateo counties exceeds twice the state’s median home price of $868,100 and is over four times the U.S. median home sale price of $416,700.
As reported by the California Association of Realtors for September 2024, the median sale price for homes reached $1.9 million in Santa Clara County and $2.1 million in San Mateo County.
To purchase a median home in the greater Bay Area, buyers must have an annual qualifying income of at least $214,800, based on the association’s data. In the counties of San Mateo and Santa Clara, the annual income threshold for qualification exceeds $500,000. According to the latest report from Joint Venture’s Silicon Valley Index, the typical household income in the region stands at $149,600.
The report ultimately highlights that these disparities are evident across various markets in California.