It’s no secret that homes in San Diego are expensive but according to a newly-released survey, more than half of those homes are downright “unaffordable.”
According to a survey released Friday by Zillow, the popular real estate website and mobile app, 55.3 percent of homes currently for sale in San Diego metropolitan areas are unaffordable, according to data collected last month.
Compare this figure to the nationwide stat, which cites 33.6 percent of homes for sale across the country as unaffordable.
According to Zillow, as mortgage interest rates rise alongside home values, that affordability will only worsen and homebuyers will need to spend larger shares of their incomes to continue buying increasingly expensive houses.
In San Diego, the survey says homeowners are currently spending 32.8 percent of their monthly income on mortgage payments. This breaks down to a payment of about $1,731 per month.
Now, if mortgage rates rise to 5 percent over the course of the next year, Zillow says homeowners in the San Diego metro can expect to spend 38.2 percent of their monthly income on mortgage payments – more so than they have historically.
The survey not only looked at the affordability of homes currently for sale in San Diego, but also homes on the market across other major American metros.
Turns out, homes are expensive elsewhere, too, including in Miami, where 62.4 percent of homes currently listed for sale are unaffordable and in Los Angeles, where 57.2 percent are unaffordable.
In San Francisco, 55.2 percent of homes for sale are unaffordable and in Denver, the same goes for 52.8 percent of homes on the market. In San Jose, Calif., it’s 50.9 percent of homes that are unaffordable, while in Portland, Ore., that figure is 50.3 percent.
To check out the stats in their entirety, click here.