Home prices in the region have also increased by 21% over the previous year
sacramento, california, tops the list of the United States’ least affordable new houses Market.
A new study examined household incomes and compared them with new home construction mortgages, which found the California capital to be associated with Miami, Florida. Eighty percent of homes in the Sacramento area, similar to Miami, are priced new homes, according to a study from the real estate-technology firm, knock, found.
The average new construction home price in the Sacramento area is $650,000, which means that residents need an income of about $128,000 to pay an average down payment of $39,000. According to the report, the median household income in the area is $76,706.
Kelly Pleasant, owner of a Sacramento real estate group, said there is a shortage of homes in the area and the market has become less competitive over the past 45 days.
“Instead of maybe 10 offers (per listing), you’re seeing five offers,” Pleasant told The Sacramento Bee. “Instead of over $50,000 or $60,000, you’re probably getting it at list price or over $20,000.”
Home prices in the region have also increased by 21% over the previous year. With rental prices soaring, that averaged $1,760 per month.
According to the study, new homes cost 65% for Las Vegas residents, 63% for Phoenix residents and 62% for Denver residents, behind Sacramento and Miami.
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This year, California recorded its first annual population reduction for the first time in state history. Overall, California’s population declined by more than 182,000 in 2020. Many have cited the state’s high taxes, and how it is not affordable for families.
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“The numbers don’t lie. People are leaving our state because it’s not cheap to live here. One party rule has made it almost impossible to raise a family,” Kevin Faulkner tweeted, the former mayor of San Diego in May.