25 Aug San Diego real estate prices gobble up bigger portions of household income, study says
It’s well known that real estate in San Diego is among the priciest in the nation. But just how much does the cost of San Diego real estate financially impact the average household budget when renting or buying?
A study by Zillow.com has found that San Diego County housing expenses may take a deep financial toll on a household budget – as much as 42.6 percent of renters’ income is required to live in a median-priced home in San Diego at $2,231 a month. San Diego homeowners don’t fare much better: Buying a home at the area’s median price of $467,000 gobbles up 35.5 percent of household income.
Those figures give San Diego real estate a pricey distinction: It is the seventh least affordable real estate market in the country. Cities in California claimed five of the least affordable housing market spots in the country, including Los Angeles, Santa Cruz, Santa Rosa, San Jose and San Francisco.
That’s in stark contrast to the rest of the nation, where the median home price of $174,900 would typically account for just 15.3 percent of household income for home ownership. Renting a property for $1,318 would account for 29.5 percent of household income.
Home prices in San Diego aren’t expected to go down anytime soon, with homes in coastal communities such as Carmel Valley, Del Mar, La Jolla, Rancho Santa Fe, Santaluz and Solana Beach rising. Prices rose 9 percent and rents rose 3.9 percent on average in San Diego county, while income is still relatively flat. Income is up only about 2 percent, which hurts affordability across the area.