4 ms·
The major issue with SF is the lack of new housing being built at the first rung of the property ladder. Plenty of 1 million dollar plus units being built, but
by spiralpolitik 12y ago
The major issue with SF is the lack of new housing being built at the first rung of the property ladder. Plenty of 1 million dollar plus units being built, but nothing for first time buyers. Worse the developers actively resist building affordable housing even when the city bends over backwards to accommodate them. Even worse is the amount of new office space being built. There simply isn't enough housing in the Bay Area to cope with the number of new jobs the cities want to add.
At some point the bubble will burst. Companies will be forced to relocate away. But sadly there is enough crazy in the market to keep it going on for a while yet.
- lucaspiller 12y ago> Plenty of 1 million dollar plus units being built, but nothing for first time buyers. What is affordable? I'm not in SF (or the U.S.), but as I understand salaries of $150k+ in tech are common. Mortgage repayments on a $1mm property work out to be ~$5,000 a month for a 35 year mortgage, which you can easily pay if you are earning that much.
- ryan-c 12y agoNormally mortgage payments aren't allowed to be more than 38% of gross income for someone with no debt which works out to $4750 for $1M/yr, and you generally have to have a 20% down payment, and even then, it's still going to have to be a jumbo mortgage.
- ryan-c 12y ago"$1M/yr" should have been "$150k/yr" there.
- spiralpolitik 12y agoOn what planet is 2/3 of your post tax income considered to be easy ? (Also most of the units being built require HOA membership so tack on another 1k to your monthly outgoing)
- deleted 12y ago[deleted]