Why Owning a Home in San Francisco has Never Cost More

Source: The San Francisco Standard  |  By Kevin Nguyen and Kevin Truong

An analysis from Redfin found that the salary necessary to afford a median-priced home in the Bay Area is $404,332 a year, a nearly 25% increase from the year before. A scan through Zillow confirms that math—the average price for a single-family home remains stubbornly well over $1 million. Paying for the upfront price of a home is still a buyer’s primary concern. But now, because of factors mostly outside of homeowners’ control, auxiliary costs—like utilities, property taxes, home insurance and maintenance work—are threatening to overtake already hefty monthly mortgage payments. 

Mark Toney, executive director of The Utility Reform Network, said just like property taxes and insurance costs, utilities are becoming a more significant part of the operating cost of homeownership. “A mortgage for the most part is predictable over time; you can budget for that,” Toney said. “The one thing you know about a utility bill is that it will escalate year after year.”