Davis- How do people afford to live there? (San Francisco, Sacramento: middle-class, for sale)

[michaelsa]

Hello,

I know Davis is expensive and am wondering how people afford to live there. Are there companies nearby that pay well, or does everyone just telecommute? I assume a large percentage of the population works at the university, and university jobs don't tend to pay much. Davis is too far to commute to San Francisco and Berkeley, and I suppose there are some high-paying jobs in Sacramento, but I've heard that the pay scale there is far lower than it is in the Bay Area.

If you live in Davis and are buying a home there, could you please let me know how you afford it? Thank you!

[edwardius]

In Davis in 2000, the median family income was 74,041 and the median price of a home was 238,500. Basically the median priced home was a little more than three times the median income in the area. When the census did a second survey in the 2005-07 period, the median family income in Davis was then $96,398 and the median priced home was $597,300, basically housing was now about 6 times median family incomes. What you are seeing is that as lending standards were relaxed during the housing boom, people were able to borrow more relative to their incomes and thus bid up prices really high in Davis.

Davis city, California - Fact Sheet - American FactFinder

Right now banks are once again tightening lending standards. Its a lot more difficult to find a stated income pay option adjustible rate loan even if you have really good credit. Because of the tightened lending standards, even borrowers with really good credit aren't able to borrow 6 times their family incomes.

This is why right now sales of homes above 500k are down 37% while the number of these homes listed for sale has increased 6%. The people whose loans are resetting need to sell and the people who might be interested in buying those homes, can't borrow enough to sustain those high prices. When inventory is rising and sales are falling, that puts pressure on sellers to lower their prices to complete their sales.

Home Front: Here come the numbers

My hunch is when all is said and done, housing prices in Davis are going to revert back to the level of about 3 time median family incomes for neighborhood. Possibly a even less.

That has already happened in most of the areas of Sacramento that were hit hard by the subprime crisis. Unemployment rates above 10% tend to make housing affordible even in the most desirable neighborhoods.

[sacgsxr]

Originally Posted by michaelsa

Hello,

I know Davis is expensive and am wondering how people afford to live there. Are there companies nearby that pay well, or does everyone just telecommute? I assume a large percentage of the population works at the university, and university jobs don't tend to pay much. Davis is too far to commute to San Francisco and Berkeley, and I suppose there are some high-paying jobs in Sacramento, but I've heard that the pay scale there is far lower than it is in the Bay Area.

If you live in Davis and are buying a home there, could you please let me know how you afford it? Thank you!

Friend of mine livens in Davis and he doesn't make very much money: but he has renters. Either that or they bought quite a while ago.

[quickfingerz]

edwardius makes some valid points. However, Davis has a housing shortage now and that wasn't the case 2000. UC Davis continues to expand while the city of Davis continues to restrict the expansion of its city limits.

Renters in Davis are ideal. My wife attended Davis. For her four years there she rented a room in someone else house. My wife's rent was covered by her grants so she paid three months at a time.

[LisainCalifornia]

Oh my goodness--you are KIDDING me, right? I grew up in Davis, and now live in the Bay Area--and all I can say is that one thing that Davis really has going for it it was the cost of living there. The cost of buy a house is wonderful there compared to the Bay Area.

I don't miss the summer with the temps over 100 each day, but there are other things I miss about Davis. My parents moved out of there when they retired to Del Webb (Roseville/Lincoln) and I miss the downtown area of Davis. The schools are not as good as our schools here, but the town had a lot more to offer. I loved walking around downtown Davis and hanging out as a teen. The university added so much to the town flavor.

Sometimes I long for the cost of living there and just the more "middle-class" feel of the town. I think Davis does a lot of things right as a town, including the farmers market. When I grew up there it was strictly a "no growth" policy, which is funny when you see it now! It exploded! What the heck happened? I was there when they opened the first McDonalds and even worked there--and getting that McDonalds was the biggest news the town had ever seen. We were so "anti-chain" at that point.

Now I live in the east Bay area in the Moraga/Orinda area, but there are still parts of Davis I miss. Like driving late a night along Pole Line road and smelling those tomatoes from the Huntz factory at night while listening to David Bowie. Good times.

[nmnita]

Originally Posted by michaelsa

Hello,

I know Davis is expensive and am wondering how people afford to live there. Are there companies nearby that pay well, or does everyone just telecommute? I assume a large percentage of the population works at the university, and university jobs don't tend to pay much. Davis is too far to commute to San Francisco and Berkeley, and I suppose there are some high-paying jobs in Sacramento, but I've heard that the pay scale there is far lower than it is in the Bay Area.

If you live in Davis and are buying a home there, could you please let me know how you afford it? Thank you!

Of course many work at the university, but don't think professors, etc don't make much money. NO, they are not top paying jobs, but they do make enough to afford to live there plus yes, many work in Sac.

Nita

[angelbug]

Originally Posted by nmnita

Of course many work at the university, but don't think professors, etc don't make much money. NO, they are not top paying jobs, but they do make enough to afford to live there plus yes, many work in Sac.

Nita

Some of the science professors make close to 200K a year from grant money. I write grants so I've seen the budgets. You would be surprised what certain professors make. Vet school professors are on a totally different pay scale than liberal arts professors. I also have neighbors who are both doctors who work at UCD Med Center and wanted the Davis schools. So they commute to Sac. Most of the folks living in Davis are not associated with UCD but work in Sac. Many of the staff at UCD live in Dixon and Woodland.

But beyond that, why single out Davis? Granite Bay is far more expensive and I never hear people wonder how people afford to live there. Some people make a lot of money, so they can afford to live wherever they want.

[Apples&Oranges]

When were you there? I lived there for 11 years in the 80's. My favorite part of Davis is the bike trails all over town. For two years I didn't even own a car - just rode my trusty balloon-tired Schwinn with big baskets. I shopped, did laundry, rode to work on old Bluebell. Those were the days!

But remember, the median age in this university town is about 24. Best thing about university towns is all the culture, art, theatre, etc. Loved it.

Originally Posted by LisainCalifornia

Oh my goodness--you are KIDDING me, right? I grew up in Davis, and now live in the Bay Area--and all I can say is that one thing that Davis really has going for it it was the cost of living there. The cost of buy a house is wonderful there compared to the Bay Area.

I don't miss the summer with the temps over 100 each day, but there are other things I miss about Davis. My parents moved out of there when they retired to Del Webb (Roseville/Lincoln) and I miss the downtown area of Davis. The schools are not as good as our schools here, but the town had a lot more to offer. I loved walking around downtown Davis and hanging out as a teen. The university added so much to the town flavor.

Sometimes I long for the cost of living there and just the more "middle-class" feel of the town. I think Davis does a lot of things right as a town, including the farmers market. When I grew up there it was strictly a "no growth" policy, which is funny when you see it now! It exploded! What the heck happened? I was there when they opened the first McDonalds and even worked there--and getting that McDonalds was the biggest news the town had ever seen. We were so "anti-chain" at that point.

Now I live in the east Bay area in the Moraga/Orinda area, but there are still parts of Davis I miss. Like driving late a night along Pole Line road and smelling those tomatoes from the Huntz factory at night while listening to David Bowie. Good times.

[LisainCalifornia]

Originally Posted by Apples&Oranges

When were you there? I lived there for 11 years in the 80's. My favorite part of Davis is the bike trails all over town. For two years I didn't even own a car - just rode my trusty balloon-tired Schwinn with big baskets. I shopped, did laundry, rode to work on old Bluebell. Those were the days!

But remember, the median age in this university town is about 24. Best thing about university towns is all the culture, art, theatre, etc. Loved it.

Sorry, I just saw this message today!

I lived there from 1971 till 1983 when I graduated from Davis High and went on to San Francisco to go to college.

I also loved the bike trails. That is one thing I really miss, because in the Bay Area town I live in we have hardly any actual bike lanes. But the town I live in now is actually very safe and lovely--similar to how Davis use to be. Davis is still lovely, but it is now HUGE! I lived there when it was very no-growth, and it only started to change after I left for college.

Take care,
Lisa

[Apples&Oranges]

My son graduated from Davis High in 1982. Did you know Heidi Peterson, Chris Webster, Tye Depena or Jay Lindsay?