WASHINGTON, D.C. – October 21, 2015 – (RealEstateRama) — The sharp increase in housing demand has led to skyrocketing home prices, shutting out a large percentage of the potential home buyers. The latest California Association of REALTORS® housing affordability report indicates every region in the state, except Kings County, posted lower affordability in the second quarter compared to the previous quarter.
In Silicon Valley, housing affordability has approached a “critical” level, according to housing experts. In San Mateo County, the housing affordability level dropped to 13 percent from 14 percent in first-quarter 2015 and second-quarter 2014. A minimum annual income of $257,210 was needed to make monthly payments of $6,430 on a $1,300,000 median-priced home.
Isaacson said the housing problem did not just happen overnight and is a result of decades of under building. “The state has failed to keep up with the housing demand for years,” said Isaacson.
“There’s just no way around it. We need to build more housing,” said Isaacson.
