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The Ultimate Guide to Resources

Real Estate Prices in the Bay Area

It is claimed that the houses for sale in the Silicon Area or Bay Area Bay Area are unattainable for several middle income families. Even for the high paid tech workers of big companies, the housing here is not affordable. A real estate startup open listings has revealed a study about this observation.

It is claimed that these techies employees can come close in affording an expensive Silicon Valley home than teachers, service industry workers and scores of other workers. But lately, there is now a signal of the area’s explosive housing costs that home ownership is not that easily obtainable by these techies or high salaried engineers.

According to a study, the software engineers of big tech companies in the Bay Area, would have to shell out over more than 28 percent of their salaries monthly in order to pay a house that is within 20 minute commuting distance from the place where they work. As an example, an average software engineer of a tech company makes a $188,000 every year and will have to allot 33 percent of this salary in order to afford a home in Cupertino which is median priced. Further, around 32 percent or 30 or 29 percent are allotted in their income for mortgage and tax payments by these software engineers in other high tech companies.

Getting a home loan is still difficult for these employees allotting the above mentioned percentages of their income. And if they do are granted of the loan, the amount is not the full price, which would need them to save up more for their down payments. For residents who are paying the very high rent prices already, still saving 20 percent for a down payment is still not enough.

Thus this difficulty in obtaining a home in the area is true for these high tech workers, this could possibly hurt the big high tech companies in their recruitment and retaining of employees.

It is with this realization of the difficulty or condition that made the executives of these Bay Area tech companies to sign and support a bill that will make it easier to develop dense housing projects at nearby transit stations.

These executives expressed that the lack of homebuilding in the area is a hindrance in hiring employees and make their companies grow. These leaders recognize that this concern about housing shortage is leading to displacement of employees, impacting rent burdens, long hours of commuting, and harm to the environment that they want to be part of the solution that they government would implement.

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