Status of Houses for Sale in the Bay Area
It is observed that for many middle income families, obtaining a house in the Bay Area or Silicon Valley area is difficult because of the very high prices in the real estate. Nowadays, even if you are a highly prized engineer of a big high tech company, you have to stretch efforts and money to be able to afford housing in this area. A real estate startup open listings has revealed a study about this observation.
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. However, there is a new development in the housing costs of the region that said to be exploding high that even these techies may not be able to own a home there anymore.
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.
Getting a home loan is still difficult for these employees allotting the above mentioned percentages of their income. 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. And if you are a resident already, it is not enough to pay for the rent which are high in prices even if you save a standard 20 percent to pay.
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.
It is with this realization of the difficulty or condition that made the executives of these Bay Area tech companies to sign and support a bill that will make it easier to develop dense housing projects at nearby transit stations.
These executives expressed that the lack of homebuilding in the area is a hindrance in hiring employees and make their companies grow. 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.
More ideas: find out here