The Affordability Crisis
Last month, Realtor.com found San Diego to be the least affordable city in America. You may now panic.
So what does that mean?
Median priced home: $517,000 (Mortgage $2,300/month)
Salary you need: $101,000
Median salary in San Diego: $62,962
In 99 of the 106 zip codes in San Diego county, less than half the households can afford a median-priced home.
Why does it matter?
“Homeownership long has been central to Americans’ ability to amass wealth; even with the substantial decline in wealth after the housing bust, the net worth of homeowners over time has significantly outpaced that of renters, who tend as a group to accumulate little if any wealth… As a means to building wealth, however, there is no practical substitute for homeownership.”—Editorial Board, New York Times, November 29, 2014
The average net worth of a homeowner is 36 times greater than the average net worth of a renter ($194,500 vs. $5,400)*
*According to the Federal Reserve Board’s 2013 Survey of Consumer Finances