San Jose is world's least affordable city for first-time homebuyers - San Jose Spotlight

"The study - conducted by financial services company Remitly - analyzed housing affordability in more than 150 cities worldwide by comparing average local incomes with typical home prices and applying standard mortgage criteria. California dominated the rankings, with six cities in the top 20. After San Jose, Los Angeles ranked second, Long Beach ranked third, San Diego ranked fourth and Vancouver, Canada rounded out the top five as the least affordable cities globally. San Francisco came in 10th and Oakland scored 19th."

"In San Jose, where the average home price is about $1.37 million, a worker earning the city's average salary of $86,605 could afford about 27.3% of a typical home, according to the study. For two average earners making a combined $173,210, it would only buy them about 54.6% of a property. The findings come as San Jose leaders continue to debate how to address a housing crisis that has increasingly priced out not only low-income residents, but also middle-class workers who keep the city running."

"During the Jan. 27 City Council meeting, several residents spoke during public comment on a proposal to expand the city's downtown residential incentive program to encourage the conversion of vacant commercial buildings into housing. The expansion, approved in a unanimous vote, will waive or reduce certain development taxes and fees and allow eligible conversion projects to include no deed-restricted affordable homes, a tradeoff city officials said is necessary to make conversions financially feasible."

Remitly analyzed housing affordability in more than 150 cities by comparing average local incomes with typical home prices and applying standard mortgage criteria. California dominated the least-affordable rankings, placing six cities in the top 20, including San Jose, Los Angeles, Long Beach, San Diego, San Francisco and Oakland. In San Jose the average home price is about $1.37 million; a worker earning $86,605 could afford roughly 27.3% of a typical home, and two average earners could afford about 54.6%. City officials approved expanding a downtown conversion incentive that waives or reduces fees but permits conversions without deed-restricted affordable units, prompting resident concerns that supply gains may not improve affordability for middle-class workers.

Read at San Jose Spotlight