A new report from Open Listings highlights how even high-paid tech workers in Silicon Valley are finding it challenging to buy a home and some home buyers are having to change their strategy.
Shankar Iyer works as an IT engineer in Sunnyvale.
The 38-year-old husband and father agrees with a recent report that found while the median salary for software engineers in the Bay Area is $210,000, many of them are unable to afford homes in major tech hubs.
“That’s actually a fact. The overall cost of living itself is high. Even if you’re well into the six figures and multiple incomes in the family it still is challenging,” said Iyer.
He has been looking to buy a home in Milpitas for a year now while prices continued rising.
“A year back when we were looking for say a three-bedroom house with maybe a backyard or something like that. That’s now become a pipe dream! Now we’re looking for a townhome with maybe no backyard,” said Iyer.
Realtors say in San Jose, the median home sale price was $1,060,000 in January, Cupertino was $2,485,000 and Mountain View was $2,400,000 which is up 51% compared to the same time last year.
“In order to purchase a median price home in Mountain View where it’s $2.4 million, the annual income needs to exceed $340,000,” said realtor Jeff Bell. “And that’s not including any consumer debt, car loans, credit cards, etc.”
Bell is one of the listing agents on a 1850-square foot home on Springer Road in Mountain View, less than four miles from the Google headquarters.