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Priced Out: How Much Do You Need to Make to Live Comfortably in the Bay Area? - YouTube
Channel: NBC Bay Area
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are they are you ever going to retire
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here housing and community you think
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about it is generational but if you
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don't make generational type money your
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runway likely ends sooner than later if
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you choose to stay here in the bay area
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i made 18 000 a year my first nbc salary
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that was in arizona i was in my mid-20s
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adjusted for inflation that's about 30
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000 a year in recent times in this day
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and age according to the california
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association of realtors you need to make
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at least 300 000
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a year to buy a home right now in four
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of our bay area counties here are the
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numbers the highest is san mateo county
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where you need to make 364 000 bucks a
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year that's a healthy healthy household
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income san francisco nearly 332 000
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bucks a year marin and santa clara
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counties also over 300 000 a year on the
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other end parts of the bay area now the
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north bay seems to be more affordable
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your median income still needs to be at
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least 139 thousand dollars a year in
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sonoma and 105 000 a year in solano
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county let's be clear here if you make
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two hundred thousand dollars a year
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you're doing something right things are
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going well but if you're going to be
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renting among the questions now will
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this be changing anytime soon you can
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make a big salary but still be forced to
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rent joining me tonight our business and
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tech reporter scott budman also with us
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oscar way an economist with the
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california association of realtors
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gentlemen nice to have you scott we've
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talked about this for for not days but
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for years together in the muse room uh
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you've got two college age kids where
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are they going to live in their mid to
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late 20s yeah very big question raj we
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don't know if they're going to go away
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to college or stay local but one thing
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we know in a few years the big question
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is how in the world are they going to
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afford to come back or stay in the bay
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areas that generational thing you talk
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about because it's rare for anybody to
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make 300 000 a year not to mention
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straight out of college and
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it's a big question that a lot of young
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people are looking at and not really
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happy when they look forward to their
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choices it's it's young people and also
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their parents like like us scott me and
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you oscar way let's bring you in here
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what's the real estate impact here for
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just normal people even higher earners
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talking about 200 000 a year that still
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doesn't cut it here in the bay area
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yeah absolutely right thanks for having
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me first of all um it's really tough you
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know to live in the bay area as you
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mentioned you know the household income
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we're looking at 300 000 to hit the
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median price home now of course there
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are some homes that may be below you
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know the requirement of 300 000 but you
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know the real estate industry and the
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housing market is actually getting
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tighter and tighter in terms of supply
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and that's why it's getting tougher and
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tougher to buy a home in california and
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of course in the bay area
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yes oh no go ahead i'm sorry to cut you
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off
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now typically um you know the the bay
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area as we know you know the household
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income is typically a little bit higher
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compared to other parts of california
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you have shown some counties in the bay
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area it's uh it's a little bit higher
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compared to let's say solano and sonoma
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but it's very true it's getting very
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very tough you know based on the number
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that we you crunched maybe about only
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about 20 percent maybe even less than 20
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percent of the households in the bay
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area can afford to buy a medium-priced
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home
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and that's really really tough oscar is
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there really a california exodus
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but on the flip side of that is there
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also a california influx or other people
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coming in here because they have they
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make these big salaries
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well you know in the last 12 months 18
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months or so because of the pandemic you
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know you have heard about you know out
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migration you have heard about people
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going leaving california or leaving bay
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area and i think in the first
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six months in the first seven eight
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months or so because of the concern
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about you know the covet situation and
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also the ability to work remotely a lot
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of people actually moved away from the
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metropolitan area some even moved out of
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california because they can find more
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affordable homes but in the last few
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months or so we started seeing a little
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bit more people actually coming back to
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the bay area or to california part of
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the reason is okay they had the
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experience of you know trying out in
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other states like utah taxes but they
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also really like you know california so
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you are seeing some people actually
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moving back at the same time of course i
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think there will still be some people
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who will be moving out because let's
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face it technology allows us to actually
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work remotely so if the uh home prices
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continue to go up yet there won't be
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more people moving out but it's probably
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not going to be as much as what we saw
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in the early part of the pandemic scott
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bubman back to you is the bay area only
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for tech salaries now everyone else
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really just kind of gets pushed out to
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the wayward suburbs or simply leaves the
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region yeah it's really tough raj part
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of the problem and oscar said it it's
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they just
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there aren't that much there isn't that
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much inventory out there so prices go
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higher and the salaries have kept up
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with those prices in the tech industry
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one thing that makes me think these
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housing prices aren't going to go
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anywhere for a while is in our economy
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investor risk is back we're seeing a lot
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of tech ipos over the last couple of
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months that means we're only a few more
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months away from young people largely
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getting
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a chance to turn in those stock options
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for cash and being able to put down and
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think about it a two hundred thousand
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two hundred fifty thousand dollar down
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payment that's the down payment to get
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into this market these days and yeah it
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takes tech money and it takes stock
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options and that is still flowing here
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into the bay area final question is it
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okay to say just to come to the
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realization that yes the demographics
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are changing and normal salaries quote
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unquote are just being priced out
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well i would say you know it's it's it's
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getting very very tough and keep in mind
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though you know we have a a generation
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that is the millennial generation that
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will be coming in and becoming home
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buyers or becoming you know the uh the
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homeowners and it's getting really tough
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for them and you you actually really
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need a high salary to live in the bay
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area now of course you know like i said
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technology allows people to move to
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other counties that might be affordable
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so it is possible that we might see you
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know more people moving out to some of
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the peripheral areas preferable counties
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but yes if you live in san mateo santa
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clara and san francisco
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you do you do need a high salary right
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now and also keep in mind you know we
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have a very very low interest rate right
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now next year interest rate probably
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will go up a little bit higher and then
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the year after that too it's the price
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we pay of our success here in the bay
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area scott budman oscar way appreciate
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your time tonight
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we have some other breaking
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