In a historic event San Jose, CA became the first city where the median home price is over $1 Million. The NAR (National Association of Realtors) stats show that the national average is $240,700. That is an increase of 4.9% from 2015. In the Second quarter of 2016 home prices have gone up in 83% of all metropolitan areas throughout the U.S. That tells us that there is no slow down in the housing market.
Just living in the Bay Area has become a luxury. Growing up in San Francisco I am use to always living in an expensive city but this is just getting out of hand. San Jose has always been a cheaper alternative but that is no longer the case. On the flip side that tells us the economy here is the strongest it has ever been. More jobs and higher salaries are the reason for this housing rise. The Tech industry has been the biggest impact on the demand to own a home in the Bay Area. While blue collar workers struggle to pay rent and send their children to school.
I wish there was a simple solution to this growing problem. There is just a very low supply of affordable housing. What is considered affordable housing in the Bay Area? In San Francisco the BMR (Below Market Rate) homes for sale are still priced anywhere from $350,000-$450,000. That is still well above the national average.
Even with all of this going on in my hometown, I can’t imagine living anywhere else. The challenge of surviving in this crazy market drives me everyday to work hard and keep up with the pace.