Real Estate Prices in the Bay Area
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. Even for the high paid tech workers of big companies, the housing here is not affordable. There is a study revealed by a real estate startup Open Listings about this housing condition around the Bay Area.
It is claimed that these techies employees can come close in affording an expensive Silicon Valley home than teachers, service industry workers and scores of other 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.
A study revealed that more than 28 percent of the monthly salaries of the software engineers in these Bay Area big tech companies are to be fork over just so they can afford a home near enough to their office to be commuted by 20 minutes or so. 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. 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. Saving up a standard 20 percent reserve for the down payment is still not enough especially for residents there who are already paying the high cost of rentals.
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.
Because high tech companies have already realized the problem, their executives signed and supported a bill that would allow to build a dense housing near transit stations.
According to the leaders of these tech companies, this housing problem is a detriment to their ability to hire employees and of the growth of their firms. 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.
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