In San Francisco, you can no longer find homes for $ 1 million

If you want to buy a house in San Francisco, prepare $1 million—at a minimum. A new report from real estate and construction website Trulia finds that 81% of homes in the region cost a million or more, indicating a 13,7% increase in prices year over year.

Фото: Depositphotos

Trulia site chose 100 of the largest metropolitan regions of the United States, based on the growth rate of homes by a million and more expensive year on year, writes New York Post. San Francisco, surprisingly, did not climb to the top of this ranking - the closest San Jose Bay area came in first place with a 14,2% increase in million-dollar homes over the year.

But it is San Francisco that heads the list of cities when it comes to the highest percentage of homes for this money in general in 2018.

In San Jose, 70% of the housing stock is valued at $1 million or more, which is why it ranked second on this list. In another Bay Area city, Oakland, 31% of homes cost more than $1 million. From there, the list shrinks sharply, with no other metropolitan area in the country exceeding 20 percent.

Trulia says such "million dollar" cities are an anomaly in the US, with just 3,6% of all homes in the country priced at $1 million or more.

Of course, there is a main reason San Francisco has become so expensive: skilled tech workers come here and compete for the limited supply in the market. And, of course, San Francisco's smaller size and population compared to other expensive cities—especially New York—lead to particularly extreme price increases.

The sharp jump in housing prices in the city occurred quickly. In the 2012 year, when the US was still recovering from the 2007-2009 recession, only 24% of homes in San Francisco cost 1 a million dollars or more. In 2013, the percentage reached 34,7 and continued to grow steadily until today.

Prices in San Jose moved similarly. In 2012, only 21,7% of homes cost a million or more. In 2013, it was already about 27,6%, in 2014 - about 32,1%, after which the growth continued until 2018, when it amounted to 70%.

Many potential home buyers are likely to refuse such offers. In general, now in the US, fewer and fewer people report that they are planning to buy a house, says the National Association of Home Builders.

Only 13% of Americans say they are going to buy a house in the next 12 months.

At the same time, mortgage rates continue to grow: the 30-year average mortgage interest rate is now close to an eight-year maximum of 4,94%, as investors expect the Federal Reserve to continue raising interest rates.

But for San Franciscans, buying a home is just the beginning; there's still the cost of living to consider. San Francisco is also the most expensive metropolitan area in the U.S. to live with a family, according to the nonprofit research Institute for Economic Policy.

The basic budget for two parents and two children in the area is 148 439 dollars per year. The average family income in the United States is only 38 203 dollars per year.

Many cities, where the most homes for a million and more expensive, are in California, and not just in the Bay area. About 20,2% of housing in Orange County, California, and 19,6% of homes in Los Angeles are estimated to exceed 1 a million dollars.

This is one of the serious reasons why more people left California in the period from 2006 to 2016 than moved to live here, according to the US Census Bureau.

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