Photo: Roshan Vyas/Flickr
Mortgage research site HSH has some sobering news for those interested in cracking into the San Francisco real estate market. According to their calculations, in order to comfortably purchase a home, a family unit must bring in an annual salary of $161,000 — the highest of the 27 markets surveyed by HSH. Yikes!
Considering San Francisco’s median annual salary, $88,518, is a little over half of what you would need to own a home, it’s easy to conclude that the market is only for the wealthy, as well as non-locals. It’s also important to note that $88,000 is double the national median annual salary of $44,952.
According to CNN’s Global Wage Calculator, a person would have to earn 358 percent of the nation’s median salary to snap up property in San Francisco. While everyone knows that it’s very expensive to live in San Francisco, sometimes it’s good to note exactly how expensive it truly is.
This time last year, the needed salary was 12 percent lower at $144,000. This significant hike seems to be part of a trend that has spread across multiple US cities. “There were increases in tax and insurance costs, and that’s a portion of it,” HSH Vice President Pete Gumbinger told Curbed SF. “But if you look at what’s happening, it’s hard to get away from the fact that the price of homes sold is up every year, and that’s a kicker to start with.”
On the off-chance you don’t have the limitless coffers of Scrooge McDuck, other cities are a lot more feasible, like Sacramento at $68,000, Chicago at $59,000 and St. Louis at an easy-breezy $37,000.