Big California City Becomes America’s Most Unaffordable Housing Market
Sacramento, California, tops the list of least affordable new products in the United States houses markets.
A new study examining household incomes and comparing them to the median mortgages on new home construction found the California capital to be tied to Miami, Florida. Eighty percent of households in the Sacramento area, like in Miami, are overpriced for new homes, according to the real estate technology firm’s study, Knock, found.
The median price of new homes in the Sacramento area is $ 650,000, which means residents need an income of around $ 128,000 to afford an average down payment of $ 39,000. The median household income in the area is $ 76,706, according to the report.
A Sacramento real estate group owner Kelly Pleasant said there was a housing shortage in the area and the market had become less competitive over the past 45 days.
“Instead of maybe 10 offers (per ad), you see five offers”, Pleasant said the bee of Sacramento. “Instead of $ 50,000 or $ 60,000 more, maybe you get it at list price or $ 20,000 more.”
Home values in the area have also jumped 21% in the past year. Rental prices have skyrocketed to an average of $ 1,760 per month.
Behind Sacramento and Miami, residents of Las Vegas are billed 65% for new homes, residents of Phoenix at 63% and Denver at 62%, according to the study.
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This year, California reported its first annual population decline for the first time in state history. In total, California’s population has fallen by more than 182,000 in 2020. Many have cited the state’s high taxes and the fact that it’s not affordable for families.
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“The numbers don’t lie. People are leaving our state because it is not affordable to live here. The one-party rule has made it almost impossible to raise a family,” he added. tweeted Kevin Faulconer, the former mayor of San Diego, in May.