San Francisco Most Expensive City for Millennials
For those interested in the most recent news about younger techies in SF, read up!
While tons of young techies and millennials are flocking to SF for jobs and to take advantage of the tech sphere – they are finding it very difficult to pivot from the rental market to purchase a first home. For those who are ready – the best SF real estate team is ready for your business.
RealtyTrac just put out a study that states San Francisco is the least affordable city in the United States for the younger generation hoping to buy a new home. The data suggests that SF saw a 68% population increase between 07 and 2013 for millennials between 18 and 25. As per the statistics, the average techie would have to be wiling to spend 78% of their annual income to purchase a home. Yeah – over 3/4s of their take home would need to be devoted to buying a home. And with properties starting at 1 Million (if you want to be in SF proper and not have to commute hours for work everyday) – this creates a terrible cycle of renting for our youth who are no longer able to go through the incredible steps of buying their first home.
That being said – all hope is not lost. For those who want to commute and like more space to spread out – in Alameda, they can purchase a home by only dedicating half of their annual salary to a purchase.
Pacific Union CEO Mark A. McLaughlin gave the Mercury News his take on rising prices in the Bay Area, pointing to the region’s economy, population growth, and desirability as three key drivers.
NATIONAL HOMEOWNERSHIP RATE LOWEST IN ALMOST TWO DECADES
With younger generations not buying homes, this is leading to the lowest home-ownership rate in nearly 20 years. With student debt rates and joblessness at an all time high – it is no surprise that the younger generation has found renting to be more suitable and practical.
Even in The Bay with employers paying more than the national average – the high cost of living (not just housing) still levels things out enough that it doesn’t make a difference. They pay you more, but you pay more to live. On the other hand, for investors – this has created an incredible rental market. There has never been a better time to contact the best SF real estate team about a multi-unit purchase!