Price Condition of Housing Too Expensive in Silicon Valley
It is said that the home prices in the Bay Area or Silicon Valley in particular are so out of reach for many families of middle income group. You may be a highly paid engineer of a giant technology company and yet you can barely afford a house in this area. There is a study revealed by a real estate startup Open Listings about this housing condition around the Bay Area.
It is said that the so-called techies can come close to owning a Silicon Valley home than other workers like teachers, service industry workers and others. But lately, there is now a signal of the area’s explosive housing costs that home ownership is not that easily obtainable by these techies or high salaried engineers.
In order to pay a home which is 20 minute away from their offices, software engineers for example at the Bay Area tech big companies have to even allot more than 28 percent of their monthly salaries. For example, 33 percent of the $188,000 salary per year of an average software engineer at a high tech company will have to spend this amount just so he or she can afford a home which is a median priced one in the area of Cupertino. Other software engineers in other high tech companies would allot 32 percent of their incomes or 30 percent or 29 percent for mortgage and tax payments.
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. For residents who are paying the very high rent prices already, still saving 20 percent for a down payment is still not enough.
And so if the dream of home ownership is not attainable by these high tech workers, recruiting and retaining employees of these high tech companies would become a problem.
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. The leaders expressed to be part of the solution since they recognized the fact that the shortage in housing could lead to displacement, crushing burdens on rent, long commute to work and harm to the environment.