Haven’t gotten a raise in a while? Here’s some good news, if you’re a homeowner – your house is likely bridging the gap. Renters, though, are falling farther behind.
For the first time, according to a new study, homes earned more money for households than the median worker in most major metro areas across the country, including San Diego.
The analysis of 2021 real estate data, by Zillow.com, found that growth in a typical home’s value was higher than the median income in 25 of 38 major U.S. metropolitan areas.
In greater San Diego:
- Typical home values grew $160,493 last year, while median pretax income was $54,703 – so homes made $105,790 more than median income.
- That means the the home appreciation was equal to roughly the annual average wage of a computer and information systems manager.
In California – and nationally – growth topped out at $229,000 in San Jose. That’s about what an oral surgeon earns.
In greater Los Angeles, the growth, at almost $132,000, approached triple the median wage, $50,000. In Riverside and San Bernardino counties, the growth, at just over $111,000, far outpaced the median wage of $45,000.
Researchers saw the same trend in the Southwest – in greater Phoenix, the growth in home values, at $103,470, doubled the median wage, $52,000.
Renters, however, are taking it on the chin. In San Diego, one-year leases cost nearly $5,000 more by the end of 2021. Nationally, the number was closer to $3,000.
For renters in other California and Arizona markets, annual rents rose by:
- Los Angeles area: $3,924
- Riverside and San Bernardino counties: $4,560
- Phoenix area: $4,644
And if renters aspire to homeownership, that means they can save far less for down payments, even as home prices skyrocket. Those payments, according to Zillow, rose by more than $10,000 nationally in 2021 for a typical 30-year fixed mortgage.
