Real Estate Marketing & Beyond
San Francisco has long been known for its obscenely expensive and incredibly competitive housing scene, and a new report shines the spotlight on just how expensive it is for millennial buyers.
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The San Francisco Business Times reports that the average millennial can only afford to buy 135 square foot of house in the city, which gives San Francisco-based millennials the lowest home buying power in the entire U.S., according to personal finance firm SmartAsset.
“Despite the city's strong job growth and its reputation for well-paying tech jobs for young engineers, wages haven't kept up with soaring property values,” the article states “This year, San Francisco's median home price exceeded $1 million.”
Which means most millennials will find it incredibly tough to save up for a deposit, and find a mortgage to buy a home in the area. In addition, a recent Business Insider post warns that millennials aren't making as much money as their parents did at the same age. On top of that, many millenials are encumbered with large student debts to pay off.
Throw in the recent finding that San Francisco is ranked as the hottest housing market in the country, and many millennials in the area might find themselves better off buying a home in another part of the country.
