July 13, 2024

Brighton Journal

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Bay Area city ranked as least affordable housing in America: Report

Bay Area city ranked as least affordable housing in America: Report

US-IT Story By Hélène Labret-Gross Silicon Valley’s capital, San Jose, seen in this aerial photo, is undergoing an urban development revolution aimed at preserving it as the thriving heart of a technology region. Innovation. The city is bucking the trend in which promising startups are taking root in suburbs and nearby cities like Mountain View, Sunnyvale, and Cupertino — home to Google, Yahoo, and Apple, respectively. Areas filled with high-density housing near downtown office towers are now booming. There are 32,000 units in or near the city centre, and “venture incubation centers” have sprung up to nurture start-ups in the areas of software, bioscience, environment and market access. (Image source should read HELENE LABRIET-GROSS/AFP via Getty Images)

(Crohn’s) – Housing affordability in the Bay Area has always been a major topic when discussing the obstacles of living in the area. Recently released 2024 International Housing Affordability Demographics Report An interesting set of numbers will probably confirm this feeling.

According to the report led by Chapman University, San Jose was the least affordable major housing market in the United States in 2023 and the fifth least expensive housing market worldwide. Not only does the South Bay lead the country, but San Francisco is also the third least expensive in the nation after Los Angeles in second place.

Top 10 ‘unaffordable’ cities around the world:

  1. Hong Kong
  2. Sydney, Australia
  3. Vancouver, Canada
  4. San Jose, California
  5. Los Angeles California
  6. Honolulu, Hawaii
  7. Melbourne Australia
  8. San Francisco, California
  9. Adelaide, Australia
  10. San Diego, California
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In the United States alone, the cost of housing in San Jose is five times less than in Pittsburgh, Pennsylvania, which is the most expensive city in the country. Aside from San Jose, four of the five least expensive markets nationwide were in California, the study said. The only city outside of California in the top five nationwide was Honolulu, Hawaii.

Image: Demography

Other “extremely unaffordable” markets in California include Sacramento and Fresno, according to the study.

Researchers believe that much of the recent rise in affordability is closely related to the pandemic. According to the study, rates of remote workers in the United States have nearly quadrupled since 2019, claiming that “nearly two-thirds of the increase in US home prices in a demand shock can be attributed to the shift to remote work.”

This has prompted many city residents to move to quieter suburban areas. “The result was a demand shock that caused house prices to rise significantly, as families moved to obtain more space, both inside homes and in yards or gardens,” the study said.

The increase in remote work has also led to an “unprecedented decline” in car ownership compared to pre-pandemic levels, the study notes.