Is everyone in Sacramento house poor? (San Francisco, Roseville: sale, rent, mortgage)

[limited_myles]

I'm looking to move to the Sacramento area with a job that will be paying around $70k and I would normally think that's a decent salary for a single person, but it looks like you need to be a dual income family to have a decent home in Sacramento. I hear a lot of recommendations to move to Land Park and East Sac, but nearly all those homes are $500k+.
I see that the median income is $55k for Sacramento, so how are people affording these crazy prices?? I find it hard to believe that first time home buyers have a fighting chance finding safe, low-crime, decent education system on their salaries.

[bentobox34]

Originally Posted by limited_myles

I'm looking to move to the Sacramento area with a job that will be paying around $70k and I would normally think that's a decent salary for a single person, but it looks like you need to be a dual income family to have a decent home in Sacramento. I hear a lot of recommendations to move to Land Park and East Sac, but nearly all those homes are $500k+.
I see that the median income is $55k for Sacramento, so how are people affording these crazy prices?? I find it hard to believe that first time home buyers have a fighting chance finding safe, low-crime, decent education system on their salaries.

Answer: People who earn average income don't live in the two top residential areas in the city. They live in average areas like suburbs (Folsom, Roseville, Elk Grove etc), or suburban parts of the city (Pocket, North Natomas etc). The median sale price for a home in Sacramento County is about $300,000, which is doable on $70k income if you can swing the down payment.

Prop 13 has created a disconnect between current local incomes and housing prices everywhere in California, and Sacramento is not immune. Also, Bay Area super commuters are driving up prices particularly in the most desirable neighborhoods of Sac. When you've been in the Bay Area for a while, neighborhoods like Land Park/East Sac feel like a dream come true compared to what you'd get for $500k in the Bay Area.

[JohnS_15]

Are you new to California? Housing prices are very expensive here in any desirable or semi-desirable place to live. There are too many people, or not enough housing... depending on if you are pro development.


As the above poster stated - people on the median income are not buying houses in the most desirable areas of Sac. They already own their homes or they rent or they buy in cheaper areas.


Buy something with a mortgage that won't kill you - but generally yes people in California spend more on housing than other places in the country.

[limited_myles]

I was raised in California as a child, but I've been living in CT for some time now. My home here is selling for $280k, but it has 1.1 acres and 3br/3ba, and that was just a normal suburban neighborhood.
So I guess, I am a little shocked at how far the dollar goes for a Sacramento home.
It seems a little unfortunate that I can't get the same thing here. I guess the weather is what makes it worth it?

[Stay West]

I find it hard to believe that first time home buyers have a fighting chance finding safe, low-crime, decent education system on their salaries.

This is California, it is competitive here. The irony is that you're complaining about a market that is far more accessible than the other major metro areas in the state. With some diligence and creativity you can get most of your boxes checked for a reasonable price. Note that reasonable does not necessarily mean cheap. And yes if you aim for the priciest zip codes first you will probably be disheartened. But here's a protip, you can live very close to those neighborhoods and enjoy their amenities without paying top dollar. I'm amazed at how lazy people are about doing the legwork involved in finding the right home buying opportunity.

[calnbs]

Since the poor college years, my wife and I made a decision to control our spending and lifestyle. Since 2000, we budget both our lifestyle under $40K a year for two people. We have been doing very well for the most part. Prior to 2000, our lifestyle was to live under $30K.

You just have to know how to live. $70K is more than enough for 1 person to live off in Sacramento, CA. You just have to know how to control your spending. Do we drive brand new Mercedes? No. Do we wear $90 T-Shirt brand name? No. Do we eat at a fancy 5 Star Restaurant? Hell No, never even close enough to their parking lot.

Do we live comfortable? Yes. Eat well? Yes. Own our own home? Yes. It can be done!

[Logic87]

Originally Posted by limited_myles

I was raised in California as a child, but I've been living in CT for some time now. My home here is selling for $280k, but it has 1.1 acres and 3br/3ba, and that was just a normal suburban neighborhood.
So I guess, I am a little shocked at how far the dollar goes for a Sacramento home.
It seems a little unfortunate that I can't get the same thing here. I guess the weather is what makes it worth it?

Property value in California is high especially desirable areas but one thing you are missing is property taxes are capped in California while on the east coast it isn't abnormal for a home worth $280k with $7-10k in property tax.

Home prices in the West Coast are inflated due to Prop 13 while on the East Coast high property taxes keep home values down.

[derekjones]

There are plenty of area's in Sacramento County that you can live in on that budget. You just happened to look into 2 of the most popular and historic areas in Sacramento. Those aren't your typical first-time buyer neighborhoods.

[wburg]

These prices are a very recent turn of events--the combination of an effective end to suburban construction in 2008 and the sudden decision of everyone in the Bay Area to move to Sacramento (since prices in the Bay Area went from "insane" to "completely topsy-turvy insane") has caused a very dramatic spike in prices (high demand, low supply.) To that extent, pretty much everyone buying recently is house-poor unless they have a high salary. For some perspective, the average salary in San Francisco is $85,000, but the average home price is $1.1 million--houses twice as expensive, salaries only 50% higher. And that $1.1 million might get you a 2-bedroom house with no parking and a backyard slightly bigger than a postage stamp.

[Majin]

I'm going to say for some reason no one else wants to say. Usually people making $70k single income are not buying homes at all.