How do they do it?!

[BayAreaHillbilly]

Family money is a factor for certain households.

[HockeyMac18]

1) Some people bought a long time ago when it was more affordable (still expensive relative to the U.S., but no where like it is now).

2) The majority of SF residents rent, and many long-term residents that have been renting for many years are not paying market rate rent prices (due to rent control).

3) New buyers often are of the double-income variety, and are often each making close to $100K.

4) New residents who are renting often are well-paid professionals who have moved here as part of the tech boom (and can, at least partially, afford the crazy market rate prices we're seeing).

4a) Or these new residents will often have roommates to help share the burden (sometimes many roommates, depending on the size of the apt/house).

5) Independently wealthy in some way that makes looking at their "average" yearly income less important (cashed out on a start up, family money, etc.)

To further illustrate point 4a, of the people that I know in my age range that live in SF (25-35), no one has a place to themselves. Most have at least 1 roommate (Gf/Bf usually) in a 1Br unit, or live with a few people in a larger place.

People make it work here through some combination of the above factors, but the numbers you're looking at really don't tell the entire story at all.

[Ultrarunner]

Originally Posted by rca215

People who bought homes 30+ years ago when they were more affordable.

That was when interest rates hovered around 15% or more...

If we had 15% rates today I'm sure prices would drop.

Have to look at the overall picture.

[chup76]

Including what everyone else said.

1. You don't have to work in San Francisco to buy a home here. These plenty of folks (techies, Facebook guy, international folk etc ) that buy in San Francisco but work elsewhere.

2. At least among immigrant families (ie that I know of), there's tri or quad income families where both parents work along with one or two older kids.

[NoMoreSnowForMe]

Originally Posted by Ultrarunner

That was when interest rates hovered around 15% or more...

If we had 15% rates today I'm sure prices would drop.

Have to look at the overall picture.

This is so true! I don't remember rates being this low ever in my adult life.

[ccm123]

We bought early and "traded up" a few times. Pure luck for us (bought relatively at a good time and always bought in good neighborhoods).