The Brief
- Home buyers must earn almost $300K more than renters to afford monthly payments in one Bay Area region.
- The gap is widening between the income needed to afford the typical home for sale versus the typical rental.
- The Bay Area has the biggest buy-to-rent premium, an analysis found.
SAN JOSE, Calif. – New research has found that the gap between the cost of buying a home and the cost of renting is ever-widening, and in the U.S., the Bay Area has the biggest home buying premium.
Highest income needed
The analysis by Redfin found that in the San Jose-Sunnyvale-Santa Clara metro area, an annual income of $408,557 is needed to afford the typical home for sale, the highest in the nation.
That’s more than 8% higher than a year ago and about 218% more than what’s needed to afford the typical apartment for rent in that South Bay region.
Redfin said the annual income of $128,580 needed to afford a typical apartment for rent in the San Jose-Sunnyvale-Santa Clara metro area was also the highest in the nation.…