San Diego families need an income of nearly $275,000 a year to afford a mortgage on a home, which is nearly double what it was before the pandemic, according to a new report from the real estate website Zillow.
By that estimate, only about 18% of families in San Diego County, where the median household income is $96,964, earn enough money to comfortably afford a home. According to the latest US Census Bureau data for 2022.
the study — which considers spending no more than 30% of income on housing after a 10% down payment “affordable” — shows how housing costs far exceed wage increases, making the American dream of becoming a homeowner more and more a reality. . Distant hope.
The average monthly mortgage payment — including insurance, property taxes and maintenance — after a 10% down payment in San Diego is $5,757, which would require an income of at least $273,613 to be able to afford it, according to Zillow . analysis. At the time of the study, mortgage rates were about 6.6%.
With these numbers, it would take a San Diegan approximately 17 years to save for a 10% down payment, assuming the family saves 5% of its gross income each month. That's nearly double the national average of 8.4 years to save for a down payment as the average annual income needed to purchase a home is $106,536.
Among the 50 largest metro areas ranked by Zillow, San Diego had the fourth-highest income need in order to afford a home, behind three other California cities — San Jose, San Francisco and Los Angeles.
However, all hope is not lost, as buyers are getting creative to make homeownership a reality. Zilo said Optimistic homeowners increasingly rely on family for assistance, “buy-share” a home, or buy homes with the intention of renting out part of them.
Another way San Diegans may be able to afford a home is to move elsewhere. The cities with the lowest income required to afford a mortgage were Pittsburgh; Memphis, Tennessee. Cleveland, Ohio; and New Orleans, according to Zillow.
The median price of a single-family home last month was $1,043 million compared to $899,000 last year — up more than 16% this year, according to data released by the Greater San Diego Association of Realtors on Tuesday. The price of an apartment or townhouse reached $662,000 this year, compared to $618,500 last year.
The most expensive home sold in San Diego County in February 2024 was a Spanish-style beach house in Coronado that sold for $28 million.
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