The dream of homeownership in San Francisco has become a distant fantasy for all but the highest earners, as new analysis exposes the shocking income now required to get a foot on the property ladder.
According to a Zillow analysis reported by the Daily Mail, prospective buyers must now earn a staggering $488,000 (£402,000) annually to comfortably afford a typical home in the city. This eye-watering figure is nearly 13 times the city's median income and represents one of the most severe affordability gaps in the United States.
The Staggering Numbers Behind the Crisis
This crisis is driven by a perfect storm of economic factors. While San Francisco's infamous property prices have actually fallen 4.6% over the past year, this minor correction is a drop in the ocean for most. The median home value still sits at a colossal $1,378,794 (£1.14 million).
The real pain comes from soaring mortgage rates. With the average 30-year fixed mortgage rate hovering around 7%, the monthly cost of financing a home has skyrocketed, obliterating any benefit from the slight dip in house prices.
Beyond the Golden Gate: A National Affordability Problem
San Francisco is merely the most extreme example of a nationwide trend. The income needed to afford a home has doubled in just five years across the US, dramatically outpacing wage growth.
Other California metros dominate the list of least affordable cities:
- San Jose: Required salary of $363,000
- Los Angeles: Required salary of $279,000
- San Diego: Required salary of $273,000
This data underscores a brutal reality: the American dream of homeownership is rapidly moving out of reach for the average professional, even in regions with high wages.
A Glimmer of Hope for Buyers?
Some experts suggest that the current market dynamics might create opportunities for those with significant capital. The combination of lower competition and slightly reduced asking prices could benefit buyers who can stomach the high interest rates, with the option to refinance later if rates fall.
However, for the vast majority of renters and first-time buyers, the market remains effectively closed. The analysis assumes a 10% down payment, but saving for even that—over $137,000 in San Francisco's case—is a monumental task while paying the city's exorbitant rents.
The figures paint a bleak picture of a housing market fundamentally detached from local incomes, raising urgent questions about the long-term economic and social future of one of America's most iconic cities.
