California metro areas in general, and San Diego in particular, are among the least affordable nationally for home buyers, according to a new study.
Online financial publisher Interest.com said Friday the median household income in San Diego is 38 percent less that what is needed to buy a home of median value. Only San Francisco is worse at 46 percent less.
Here’s how California metro areas ranked among the top 25 nationwide in terms of the affordability gap:
- 18. Sacramento (-8%.)
- 22. Los Angeles (-32%)
- 24. San Diego (-38%)
- 25. San Francisco (-46%)
Affordability is not much better elsewhere. A median-income household can only afford a median-priced home in 10 of the 25 largest U.S. metropolitan areas, with Minneapolis the most affordable.
“Low mortgage rates are helping home affordability to some extent, but the key ingredient – which has been missing to this point – is substantial income growth,” according to Mike Sante, managing editor of Interest.com. “Millennials, in particular, are struggling to overcome their student loans and save enough money for a down payment.”
