SAN JOSE, Calif.–How expensive is it to purchase a home in this and neighboring markets?
According to new data from Zillow, the average buyer in the San Jose metro area (Santa Clara and San Benito counties) must set aside 182% of annual income — or nearly two years’ worth of salary — to put together the recommended 20% down payment.
The median income in those markets is $105,455; the median 20% down payment is $192,320, and the median home value is $961,600, Zillow’s data show.
The picture isn’t any better to the north in the San Francisco market (including San Mateo, Alameda, Contra Costa and Marin counties), where the average buyer must set aside 180% of annual income to come up with 20% down payment. In those markets the median income is $91,777; the median 20% down payment is $164,920; and the median home value is $824,600.
Zillow noted that the 20% down payment in those markets actually exceeds the average values of entire homes in other parts of the country.
The Zillow data show that in markets such as Pittsburgh, Indianapolis and Kansas City, 48% of annual income covers a 20% down payment.