1 in 5 Bay Area Homebuyers Are Looking Elsewhere
Housing affordability is worsening in the San Francisco Bay Area. About one in five people in the Bay Area who are seeking homes are looking outside the region to places like Sacramento and Seattle, The Mercury News reports.
Data from Redfin’s first migration report has the San Francisco region, which includes San Jose and Oakland, as the top location where potential homebuyers are most likely to look elsewhere. The company looked at about 1 million users looking for homes in 75 U.S. metros during the first quarter of 2017.
Of those users, 110,000 were in the Bay Area and 19.4% of them were looking for homes outside the area. Even more concerning: San Francisco has the highest net outflow, the difference between the number of potential homebuyers moving in and the number of homebuyers moving out. Net outflow is currently at 15,087.
Redfin chief economist Nela Richardson said while there may be high-paying jobs, there has not been enough budget-friendly housing. Even families with two incomes are struggling and realizing homeownership means moving elsewhere.
Bay Area Council’s recent poll revealed 40% of Bay Area residents plan to leave within the next few years due to traffic and housing issues. About 46% of Millennials are planning to move.
A report by the U.S. Department of Housing and Urban Development said a family of four earning $105K in San Francisco and on the Peninsula is now low income.
