San Francisco housing market reaches highest levels of unaffordability: The tech led housing bubble where the typical condo now sells for $1.1 million.
ByThere is no doubt that San Francisco is in a deep housing mania. When you take a look at the junk you can buy with $1 million you realize something is amiss. Bubbles are hard to assess when you are in them. You have continuing momentum pushing prices higher and the constant rhetoric that “this time is different” although history tends to serve as a better guide. But San Francisco is in another dimension. The median home price is now $1.25 million and the typical condo is selling for $1.1 million. You have tech professionals earning good money struggling to afford basic rundown rentals. All of this is being spurred by hot money in the tech sector and foreign money flooding the market. In a place like San Francisco even a professional couple with a solid down payment will have a tough time competing with all cash offers over asking price. As we noted, last month we saw a large portion of the market being taken over by all cash offers yet again as regular buyers are priced out. San Francisco is now more unaffordable than at the peak of the last bubble…
