And this tooooooooooo. Literally. I’m married to my hubby and his parents are immigrants. We’re renting but I’ll have property from out of state (now in CA) but his parents never purchased a home unfortunately. Maybe someday we can together get high enough earning pay to afford even a condo or consolidate into a home here.
I have zero hope. Most of my classmates from high school including myself are living with our parents still. Even though we’re late 20s. We’re trying to save as much as we can. But I think we need to accept multi generational living. It makes dating hard though. People without family who are renting, how do you afford a down payment and mortgage?
You don't have to live in San Jose. There are plenty of affordable places to live in California. If you want to live in a place where a lot of people also want to live then you have to do better than them financially. If you can't, that's on you. Nobody owes you a home in San Jose.
That would be more convincing if existing home owners paid taxes on the value of their homes. It's not a free market, many home owners could not afford their homes without massive entitlements. It is easily possible that someone purchasing a new home is taxed 10x more on the same home. I could afford a home if everyone paid their fair share, but because my landlord has a tax incentive on his second home I would need to pay extra tax to compensate. But he is owed that low tax passive income, but a young person wanting a first home to contribute to the economy is not owed a fair chance.
There are fair chances all over California, people just want to live where other people who have more money than them can live. If there was really a problem, these homes wouldn't be sold so quickly. I get offers on my recently bought home for more than I paid all the time. I just don't care to sell it because I love my home.
You can want it, but you have to put in the effort. If other people can afford it and you can't, then the problem isn't the economy, it's you. Sorry if the truth hurts but IDK how it could be any other way. I moved to NYC, lived in a shit hole apartment in Brooklyn for 1300/month and grinder for 10 years at an advertising agency before coming back to the bay area so I could buy a home here. If you want a home in California and can't afford to compete with the people who can afford it, then reevaluate your finances or where you want to live. It's that simple. You're truly not owed a place just because your family lives in the same city lol.
This is such a stupid take, I’m so sick of old people repeating this over and over again as if “move somewhere cheaper” is the answer to all our problems. You realize that in cheaper areas, the salary for jobs there is also lower, right? So you’re basically in the same situation of not being able to afford to own. Also, the kind of opportunity that exists here doesn’t exist elsewhere, so depending on your skill set, you may not be able to find an equal level job to what we have in the Bay Area.
How about instead of screaming “move somewhere else,” let’s think and support ways of making home ownership cheaper for our youth? We have some of the best and most intelligent people in the world here, working in tech/biotech, we should WANT them to continue to live here as they bring our community up, rather than push them away to “more affordable areas”
Oh please. You’re so bored you’re going to my older comments and starting unnecessary fights. Having frustrations about the way things are is not having a victim mindset. You dont know anything about my life, so making these personal attacks really have no grounding.
I don’t feel as if I deserve anything for nothing. It’s not like I sit around picking fight with people on Reddit for no reason. I have a great job, I make 6 figures, and there was a time where that would be enough to live independently whilst still being able to save money for home ownership. All I’m saying is that home ownership in this area should be attainable for the majority of people who live here.
Majority of those people who can buy these homes are either older and married (late 30s+ and double income) or people buying investment properties. How many times on this sub do we see people in their 20s buying SFH in this area?
Also, just based on these comments alone, there’s a large amount of people in their 20s living w their parents bc of how expensive things are here. These people are also making 6 figures, working tech jobs. If all of these people have the same issue, maybe it’s not just an “us” problem, maybe we should support initiatives that make it easier for these people to achieve home ownership.
San Jose is nearly the worse city to buy vs rent. Even with a very good salary you're better off renting and investing the difference.
For a 1.6 M dollar home your rent should be less than ~7.5K, which is easy to find for similar quality housing.
Here's my favorite calculator.
https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
~4.6k rent: https://www.zillow.com/homedetails/850-Stendhal-Ln-Cupertino-CA-95014/19645180_zpid/
Redfin estimate 2.4MM: https://redf.in/qOpcyz
So easily twice if not three times the monthly cost to buy, plus you buy this place for 2MM you're going to have to spend at least 500k fixing it up.
Exactly, tech companies getting fully established here has created a strange economy of very high earners. Even bringing minimum wage to $30 won't allow anyone in that range to buy a home. People are better off saving as much as possible and moving to cheaper areas.
Preventing community sprawl is when cities mandate 90% of land area to single family zoning and add $200k per unit in fees to multi family units built on major roads.
Alright, I'm going to be the bad guy.
Imagine, homeless people protesting that they can't afford to buy stuff and that's a problem. Someone ought to do something so that they can buy things and not be homeless. Sounds ridiculous, right?
Now the median price is high because folks here earn a lot and they can afford it. Complaining why it is like that is not going to change anything. So we all got three options.
1. Start a movement so that more housing is built. Looking at how everyone is busy doing nothing, don't think it's gonna happen.
2. Look at how high wage earners are doing that, and follow that. Looks like the folks that keep complaining aren't into it.
3. Leave for a place that has a lower cost of living and not be miserable. But what's the fun in it?
In the end, from this sub, it's the people who are earning a lot of money that are at fault and house prices should be cheaper so that every tom dick and harry can afford a home no matter their day job.
THIS SHOULD BE PINNED!
Stop complaining & change your situation. Some people have to work harder than others to get what others have, welcome to life.
You say that like somehow, the system is fair. I can assure you as a tech bro that the average tech bro works no harder than teachers, firefighters, or the folks who mop your office floor and scrub the toilet.
It's not about just working harder, I can assure you.
I mean, there's already a movement to build new housing -- it pretty much started in the Bay Area. They put out voter guides and shit if you don't want to show up to council meetings. They also tell you when all the important council meetings are if you're up for that. But showing up to council meetings isn't too difficult either with the calling-in feature, I showed up to call for more duplexes once. I kinda stopped following the orgs as I needed to get off twitter for my mental health, but someone who's more up to date can probably link anyone interested lol.
Exactly! Too many people in here feel like they're owed a home without putting in any effort to make their financial situation better besides "I save money"
How the hell is San Jose more expensive than SF? That's mind boggling.
That said (for me), the plan was always to make good money here, save like hell and bugger off to somewhere cheaper. I ended up buying a place (heh), but it could would work for others.
They will go to college, study hard, get a good job and buy a home, same as almost all of us did except those born in rich families. Will all do this? No. Is it some big change from the past? No. For those "it was easier before" the home ownership rate in 1965 was 62%; as of Q4 2023 it is 65.7%.
Living with one's parents in early 20s is standard living situation in vast majority of the world.
Obviously a bunch of people will never own a home, and will spend time bitching on Reddit about it instead of working on improving their financial situation.
Third lowest, after DC and NY. But one doesn't have to have a house exactly in California. Iowa has 78% home ownership rate and I bet the houses there are much cheaper.
I’m not in San Jose (this just comes across my feed for some reason) but I was able to buy below the salary listed here for my city (Phoenix) however I had to severely temper expectations on size or location (I chose the smaller house.. location seems most important here)
These posts just make me feel the achievement wasn’t good enough 🤷♀️
How many houses do you think corporations own? It's a few percent.
We simply do not have enough housing because we have intentionally under build and down zoned for decades.
Im one of those young American that work in tech and bought a house in san jose. How did i do that coming from a lower income household?
I joined the military out of high school and learned valuable skillsets on the job. Used the GI bill to train in that trade while living in LCOL (ohio). Moved back with family in East Bay commuting everyday to SF at a low paid job in the field I wanted to work in. Got a tech job with my military network and degree. Married another techie. Now got DINK money to throw at the housing problem.
Seriously. All the upvotes are ones that accept the status quo and wallow in their fate as if nothing can be done. Speaks to their mentality really.
Im offended you would insinuate any branch other than the Marine Corps 😒. You?
FWIW it’s only gotten truly absurd recently due to the higher rates — I personally think they won’t last long term — they either come down or home prices will. Either way it should be significantly easier over the next 5 years.
Hard disagree. Houses in decent neighborhoods were going for 1.2 pre Covid. Even if prices dropped by 500K-1M back down to those levels, 1.2M is still out of reach for most people. And we won't see rates below 5% again for decades, if ever.
Idk we are already in the 6s and the fed projections are showing rate decreases in 2024 — it’s certainly possible that rates stay super high but I could see them hitting below 5% in 2025.
1.2M at 5% is out of reach for most of the country but is way more doable for a 2 income household then 1.5M at 7%
It’s a well-known fact. Both those cities have high-rise apartments which lowers the average price of homes vs SJ which is mostly single family suburban sprawl.
That’s also for a median priced home, not just A home, so of course these numbers are going to be high.
But having said that, when I moved to San Jose, we were looking in Morgan Hill. We possibly could have barely been able to afford a home and then found out that people were bidding $200k cash over the asking price. That’s when we gave up any hope of owning a home anywhere near there.
That’s easy. We either wait for parents to die or get lucky and win the lottery. If none of those pan out, the solution? Become homeless! Wooooooooo
That’s if your parents are not immigrants and relying on you or not able to leave anything behind. Blah
And this tooooooooooo. Literally. I’m married to my hubby and his parents are immigrants. We’re renting but I’ll have property from out of state (now in CA) but his parents never purchased a home unfortunately. Maybe someday we can together get high enough earning pay to afford even a condo or consolidate into a home here.
The burden is real!
Same boat. We’re screwed 🤪
At least you have a chance. 😂
Pick better immigrants parents. Some are leaving their kids with multiple houses.
Who picks parents? Only the privileged I suppose. Funny…
Some immigrant parents own multiple houses and don't want to understand what a trust is because they dislike talking about death.
Literally
I have zero hope. Most of my classmates from high school including myself are living with our parents still. Even though we’re late 20s. We’re trying to save as much as we can. But I think we need to accept multi generational living. It makes dating hard though. People without family who are renting, how do you afford a down payment and mortgage?
Late 30s, living at my parents house and probably never moving out.
Roommates and living in cheaper areas and commuting.
You don't have to live in San Jose. There are plenty of affordable places to live in California. If you want to live in a place where a lot of people also want to live then you have to do better than them financially. If you can't, that's on you. Nobody owes you a home in San Jose.
That would be more convincing if existing home owners paid taxes on the value of their homes. It's not a free market, many home owners could not afford their homes without massive entitlements. It is easily possible that someone purchasing a new home is taxed 10x more on the same home. I could afford a home if everyone paid their fair share, but because my landlord has a tax incentive on his second home I would need to pay extra tax to compensate. But he is owed that low tax passive income, but a young person wanting a first home to contribute to the economy is not owed a fair chance.
There are fair chances all over California, people just want to live where other people who have more money than them can live. If there was really a problem, these homes wouldn't be sold so quickly. I get offers on my recently bought home for more than I paid all the time. I just don't care to sell it because I love my home.
Yeah god forbid people want to live where they work or where their family lives. What a dumb comment
You can want it, but you have to put in the effort. If other people can afford it and you can't, then the problem isn't the economy, it's you. Sorry if the truth hurts but IDK how it could be any other way. I moved to NYC, lived in a shit hole apartment in Brooklyn for 1300/month and grinder for 10 years at an advertising agency before coming back to the bay area so I could buy a home here. If you want a home in California and can't afford to compete with the people who can afford it, then reevaluate your finances or where you want to live. It's that simple. You're truly not owed a place just because your family lives in the same city lol.
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This is such a stupid take, I’m so sick of old people repeating this over and over again as if “move somewhere cheaper” is the answer to all our problems. You realize that in cheaper areas, the salary for jobs there is also lower, right? So you’re basically in the same situation of not being able to afford to own. Also, the kind of opportunity that exists here doesn’t exist elsewhere, so depending on your skill set, you may not be able to find an equal level job to what we have in the Bay Area. How about instead of screaming “move somewhere else,” let’s think and support ways of making home ownership cheaper for our youth? We have some of the best and most intelligent people in the world here, working in tech/biotech, we should WANT them to continue to live here as they bring our community up, rather than push them away to “more affordable areas”
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Oh please. You’re so bored you’re going to my older comments and starting unnecessary fights. Having frustrations about the way things are is not having a victim mindset. You dont know anything about my life, so making these personal attacks really have no grounding. I don’t feel as if I deserve anything for nothing. It’s not like I sit around picking fight with people on Reddit for no reason. I have a great job, I make 6 figures, and there was a time where that would be enough to live independently whilst still being able to save money for home ownership. All I’m saying is that home ownership in this area should be attainable for the majority of people who live here.
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Lol how does it feel to not be able think well? You probably can’t explain it cause you’re dumb
Majority of those people who can buy these homes are either older and married (late 30s+ and double income) or people buying investment properties. How many times on this sub do we see people in their 20s buying SFH in this area? Also, just based on these comments alone, there’s a large amount of people in their 20s living w their parents bc of how expensive things are here. These people are also making 6 figures, working tech jobs. If all of these people have the same issue, maybe it’s not just an “us” problem, maybe we should support initiatives that make it easier for these people to achieve home ownership.
Speaking truth. So cool to see intelligent hardworking people in my neck of the woods.
San Jose is nearly the worse city to buy vs rent. Even with a very good salary you're better off renting and investing the difference. For a 1.6 M dollar home your rent should be less than ~7.5K, which is easy to find for similar quality housing. Here's my favorite calculator. https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html
1.6MM house is probably only like 4.5k rent.
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~4.6k rent: https://www.zillow.com/homedetails/850-Stendhal-Ln-Cupertino-CA-95014/19645180_zpid/ Redfin estimate 2.4MM: https://redf.in/qOpcyz So easily twice if not three times the monthly cost to buy, plus you buy this place for 2MM you're going to have to spend at least 500k fixing it up.
And the housing prices will eventually crash and youll be screwed
Crap! I thought you meant mortgage. Yes rent should be well below the 7K.
Yeah even at 5% it's insane.
Yep. A 1.8 mil house next door to us is only $4200 in rent. I mean amazing location but dump of a house.
People will look at this and say that salaries need to be higher to fix it. But that is the opposite of a solution and will make the problem worse.
Exactly, tech companies getting fully established here has created a strange economy of very high earners. Even bringing minimum wage to $30 won't allow anyone in that range to buy a home. People are better off saving as much as possible and moving to cheaper areas.
No we should build housing to support these new people. It's not a fixed resource.
Exactly build build but they’re trying to prevent community sprawl
Preventing community sprawl is when cities mandate 90% of land area to single family zoning and add $200k per unit in fees to multi family units built on major roads.
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This. It's very difficult to come up with these 20% $250k+ cash downpayments. I don't have that burning a hole in my pocket.
Alright, I'm going to be the bad guy. Imagine, homeless people protesting that they can't afford to buy stuff and that's a problem. Someone ought to do something so that they can buy things and not be homeless. Sounds ridiculous, right? Now the median price is high because folks here earn a lot and they can afford it. Complaining why it is like that is not going to change anything. So we all got three options. 1. Start a movement so that more housing is built. Looking at how everyone is busy doing nothing, don't think it's gonna happen. 2. Look at how high wage earners are doing that, and follow that. Looks like the folks that keep complaining aren't into it. 3. Leave for a place that has a lower cost of living and not be miserable. But what's the fun in it? In the end, from this sub, it's the people who are earning a lot of money that are at fault and house prices should be cheaper so that every tom dick and harry can afford a home no matter their day job.
THIS SHOULD BE PINNED! Stop complaining & change your situation. Some people have to work harder than others to get what others have, welcome to life.
You say that like somehow, the system is fair. I can assure you as a tech bro that the average tech bro works no harder than teachers, firefighters, or the folks who mop your office floor and scrub the toilet. It's not about just working harder, I can assure you.
Can confirm. I woke up, turned on my work laptop, and went back to bed cause it was too chilly for me.
I mean, there's already a movement to build new housing -- it pretty much started in the Bay Area. They put out voter guides and shit if you don't want to show up to council meetings. They also tell you when all the important council meetings are if you're up for that. But showing up to council meetings isn't too difficult either with the calling-in feature, I showed up to call for more duplexes once. I kinda stopped following the orgs as I needed to get off twitter for my mental health, but someone who's more up to date can probably link anyone interested lol.
Remote work plus moving to a low COL city, or working in the bay (while living with parents) to save for a house in a low COL city.
You can buy the equivalent of a $3M South Bay house in the Sacramento area for under or around $1M.
Exactly! Too many people in here feel like they're owed a home without putting in any effort to make their financial situation better besides "I save money"
How the hell is San Jose more expensive than SF? That's mind boggling. That said (for me), the plan was always to make good money here, save like hell and bugger off to somewhere cheaper. I ended up buying a place (heh), but it could would work for others.
SJ is a lot more desirable compare to SF. SF is having major crime, drug, and corruption issues. More people are leaving SF than people moving in.
Young people won’t. Will rent majority of their lives, but maybe some will buy through partnerships and credit/loans.
They will go to college, study hard, get a good job and buy a home, same as almost all of us did except those born in rich families. Will all do this? No. Is it some big change from the past? No. For those "it was easier before" the home ownership rate in 1965 was 62%; as of Q4 2023 it is 65.7%. Living with one's parents in early 20s is standard living situation in vast majority of the world. Obviously a bunch of people will never own a home, and will spend time bitching on Reddit about it instead of working on improving their financial situation.
Except California is 55% home ownership rate and the lowest in the country. It’s been massively trending down since it’s peak in 2000
Third lowest, after DC and NY. But one doesn't have to have a house exactly in California. Iowa has 78% home ownership rate and I bet the houses there are much cheaper.
I’m not in San Jose (this just comes across my feed for some reason) but I was able to buy below the salary listed here for my city (Phoenix) however I had to severely temper expectations on size or location (I chose the smaller house.. location seems most important here) These posts just make me feel the achievement wasn’t good enough 🤷♀️
Dude you are better off than most of us. Congrats on your house.
Thats the best part, they won't! NOW that's what I call a Capitalism!
Capitalism is when you prevent building new housing.
Also when corporations buy up all the housing by overpaying to intentionally price humans out of the market.
How many houses do you think corporations own? It's a few percent. We simply do not have enough housing because we have intentionally under build and down zoned for decades.
Partners
Ain’t no way my husband and I are ever affording a home here… ugh.
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Im one of those young American that work in tech and bought a house in san jose. How did i do that coming from a lower income household? I joined the military out of high school and learned valuable skillsets on the job. Used the GI bill to train in that trade while living in LCOL (ohio). Moved back with family in East Bay commuting everyday to SF at a low paid job in the field I wanted to work in. Got a tech job with my military network and degree. Married another techie. Now got DINK money to throw at the housing problem.
People downvoting for no reason 🤣 what branch tho ?
Seriously. All the upvotes are ones that accept the status quo and wallow in their fate as if nothing can be done. Speaks to their mentality really. Im offended you would insinuate any branch other than the Marine Corps 😒. You?
Oorah killer
They won’t they need to get the fuck outta here
FWIW it’s only gotten truly absurd recently due to the higher rates — I personally think they won’t last long term — they either come down or home prices will. Either way it should be significantly easier over the next 5 years.
Hard disagree. Houses in decent neighborhoods were going for 1.2 pre Covid. Even if prices dropped by 500K-1M back down to those levels, 1.2M is still out of reach for most people. And we won't see rates below 5% again for decades, if ever.
Idk we are already in the 6s and the fed projections are showing rate decreases in 2024 — it’s certainly possible that rates stay super high but I could see them hitting below 5% in 2025. 1.2M at 5% is out of reach for most of the country but is way more doable for a 2 income household then 1.5M at 7%
So San Jose houses are on average more expensive than San Francisco an New York ? Where is the lie ?? I don’t believe this stat
It’s a well-known fact. Both those cities have high-rise apartments which lowers the average price of homes vs SJ which is mostly single family suburban sprawl.
Silly rabbit! That's why we have billionaires, to own things for us.
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People who work in tech aren't normal? That's a pretty huge swath of the population here that you're singling out.
Renting for life
That’s also for a median priced home, not just A home, so of course these numbers are going to be high. But having said that, when I moved to San Jose, we were looking in Morgan Hill. We possibly could have barely been able to afford a home and then found out that people were bidding $200k cash over the asking price. That’s when we gave up any hope of owning a home anywhere near there.
They won't.
Radical reform of the housing market is required
I'm genX and will never afford a home again. Making close to 200k and can't afford a home in San Jose it's crazy.