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In the California Bay area $117,000 now qualifies as ‘low income’

In the California Bay area $117,000 now qualifies as ‘low income’

The Department of Housing and Urban Development issued a report this week describing a family income of $117,000 as ‘low income’ in San Francisco’s Bay area. The classification earns its justification off of rising property prices, where even crumby and tiny burned out homes are selling for near or in excess of $1 million, due to the high demand and limited supply of properties. If tech companies like Facebook and Google are compensating their employees well, and they want to find properties in the area, they had better be prepared to shell out some big bucks for it.

CBS Evening News reports:

SAN FRANCISCO — A report out this week from the Department of Housing and Urban Development finds the median price for a single-family home in the Bay Area is now $935,000. A family earning $117,000 now qualifies as “low income” in the region.

CBS News went to see California’s red-hot housing market with realtor Larry Gallegos. He showed us a house you would think he couldn’t give away. But Gallegos says the home, complete with leaks in the roof, sold for $1.23 million. The buyer beat out six competing offers, all above the asking price.

“It’s a little mind-blowing, but it is the norm around here,” Gallegos said.

That norm is fueled by thousands of well-paid tech workers who have driven up the median price of a San Francisco house to $1.6 million dollars, the highest in the country. While housing prices are rising faster than incomes nationwide, nowhere is it more evident than in the Bay Area, where home values have soared a staggering 64 percent over the last five years.

That could explain how a 1,000-square-foot shell of a house in the heart of Silicon Valley sold for close to $1 million dollars. Also recently listed? A burned-out home near Google and Apple.

Serious buyers also better bring cash. Just ask Sally Kuchar, who tracks real estate for the website Curbed San Francisco.

“We cannot afford to live here, nor could we afford to live pretty much anywhere in the Bay Area,” she said.

The same goes for teachers, hospital workers, police officers and working people all over, who make up the lifeblood of any community.

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One flier could speak for the entire Bay Area housing market: “Enter at your own risk.”

But this new trend doesn’t bode well for the rest of the community which doesn’t find itself employed by the mega tech companies of Silicone Valley. Those who are employed in the public or service sectors are increasingly finding themselves in a position where their incomes can no where near approach the rising cost of living, designed to exploit the wealth of the tech market. Is San Francisco finding out that it is becoming an economy of, for, and by the IT industry?

 

 

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tom
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tom

When you think about it, this kind of situation demonstrates the complete inadequacy of the American economic and social system. Supposedly it’s “free-market capitalism”, except that most of the markets aren’t by any means free. Start with the government imposing zero percent interest rates! The interest rate is the market price of money, and when the government puts its elephantine foot on the scale to falsify that, nothing else can possibly work. Moreover, corporations always get a free pass. Employees have to accept low pay “because that’s the market rate” (actually the people in HR decided on it yesterday, but… Read more »

Daisy Adler
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Daisy Adler

… while 42 million Americans rely on food stamps to survive, under the level of poverty – a family of three living on $20,420 a year.
http://www.ezhealthmart.com/wp-content/uploads/2017/10/Federal_Poverty_Level_Chart_2018.pdf
According to a recent report from the U.S. Department of Housing and Urban Development (HUD), the number of homeless individuals in the U.S. amounted to 553,742 in 2017. Long-term homelessness increased by 12.2% between 2016 and 2017.

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