Price Condition of Housing Too Expensive in Silicon Valley
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. You may be a highly paid engineer of a giant technology company and yet you can barely afford a house in this area. A real estate startup open listings has revealed a study about this observation.
Owning a Silicon Valley home is said to be affordable by these so-called techies employees, more than those workers as teachers, service industry workers and other scores of 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.
In order to pay a home which is 20 minute away from their offices, software engineers for example at the Bay Area tech big companies have to even allot more than 28 percent of their monthly salaries. For example, 33 percent of the $188,000 salary per year of an average software engineer at a high tech company will have to spend this amount just so he or she can afford a home which is a median priced one in the area of 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.
But still, these people who are allotting those mentioned percentages of their income for the mortgage payments are still having a hard time in getting a loan for a house. 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. For residents who are paying the very high rent prices already, still saving 20 percent for a down payment is still not enough.
If this is difficult to have a home ownership in the area even for high tech workers, these local tech companies will have difficulty in recruiting and retaining employees then.
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.
As stated by these executives that the lack of housing in the area or California as a whole is becoming a hindrance in their recruitment and company growth. These leaders recognize that this concern about housing shortage is leading to displacement of employees, impacting rent burdens, long hours of commuting, and harm to the environment that they want to be part of the solution that they government would implement.