San Jose was just named the most unaffordable U.S. city in the 13th Annual Demographia International Housing Affordability Survey for 2017. It ranked fifth most unaffordable city overall. The study reviewed 406 urban markets in nine countries, including Australia, Canada, China and Hong Kong, Ireland, Japan, New Zealand, Singapore, the U.S. and UK, SF Gate reports.
Median home prices in San Jose are above $1M, according to the National Association of Realtors. San Francisco came in not far behind as the fourth most expensive U.S. urban area after Honolulu and Los Angeles. The City by the Bay ranked ninth overall in unaffordability. Surprisingly, Sacramento was a new entrant to the unaffordable list, being categorized as “severe unaffordability.”
Housing affordability was measured as a ratio of median house prices in a given area to median annual gross income.
The most affordable markets in the U.S. were Rochester and Buffalo in New York, Cincinnati and Cleveland in Ohio, and Pittsburgh, Pa. [SFG]