Real Estate Prices in the Bay Area
It is observed that for many middle income families, obtaining a house in the Bay Area or Silicon Valley area is difficult because of the very high prices in the real estate. Nowadays, even if you are a highly prized engineer of a big high tech company, you have to stretch efforts and money to be able to afford housing in this area. A real estate startup open listings has revealed a study about this observation.
Owning a Silicon Valley home is said to be affordable by these so-called techies employees, more than those workers as teachers, service industry workers and other scores of workers. But it is said that home ownership by these prosperous techies may not be possible too nowadays because there is a shift signaling the more expensive costs again of the housing in the area.
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. A study for example would cite an average software engineer earning $188,000 a year in a tech company, would have to spend 33 percent of this salary in allocation of the median priced home she or he owns in Cupertino. 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.
But even if these mentioned employees are exceeding the above mentioned percentages for mortgage payments are still having a hard time obtaining a home loan. 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. And if you are a resident already, it is not enough to pay for the rent which are high in prices even if you save a standard 20 percent to pay.
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.
This concern is already acknowledged by these Bay Area tech companies, and so their executives supported a bill to make it easier to build near transit stations housing projects.
As stated by these executives that the lack of housing in the area or California as a whole is becoming a hindrance in their recruitment and company growth. They further stated that this shortage in housing would lead to displacement, rent burdens, long commutes and harm in the environment, and these companies want to be involved in the solution.