Salary to "Live Comfortably" (San Jose, Hayward: to buy, construction, incomes)

[Perma Bear]

Originally Posted by neutrino78x

lol...things are still overblown in this thread. No, the median income of 100k won't buy a SFH here, but that just means owning a SFH in Silicon Valley constitutes upper class, not middle class. Middle class is the lifestyle one has at the median income for a given area.

You guys need to remember that people are living in Silicon Valley on 16k/year (minimum wage). I'm one. I live here, too. Growing up, I was in the upper class, but I'm lower class now (economic class; we don't have social classes in the USA).

There are single mothers earning 16k/year and raising their kid on that. So 150k should actually be VERY comfortable.

The only thing is that middle class is different in a big city than it is in the middle of nowhere. In the Arizona desert, the median income will buy you a four bedroom house with a big yard and all that. However, in a big city, that is NOT middle class. That's UPPER class. In a big city, middle class is owning a condo inside of a building containing other condos.

There is nothing uncomfortable about living in a condo or apartment.

Remember you're only supposed to spend 1/3 of your income (after taxes) on housing. You should still have 2/3 left over to buy things for your kids, save for their college, etc. If you're paying more than 1/3 of your after tax income on your housing, then you can't afford your dwelling and need to downsize.

In San Jose, Paris, New York, London, Tokyo, etc., 1/3 of a middle class income -- the median income for the area -- buys a condo. In Jericho, Kansas, that buys a single family home along with the land underneath. You are middle class in both areas; you are earning the median income.

I'm curious how you ended up lower class. Probably believing that owning a condo makes you middle class.

[neutrino78x]

In the bay area, owning a condo is middle class, yes. That is what one can afford with the median income, hence, it is middle class housing.

[artillery77]

Originally Posted by cbone4

My boyfriend and I moved to south san jose from Atlanta about 8 months ago, and so far we are regretting the decision.

He currently makes $95k base and I make $70k. Our rent is about $2300/month. Its tough saving money with rent and everything costing so much…

Just curious, how much do you think you need to make to live “comfortably” here? (I.e. Being able to save money while still having a social life)

The price fluctuations out here are likely a bit different than Atlanta. I picked up a condo in S. San Jose in 2010 for $150K. When I bought it I noticed a foreclosure notice on one across the way for an exact same unit noting $442K was past due.

My realtor asked if I wanted to cash it out last month and thought I could get $350K pretty easy.

The Valley runs on tons of capital being dumped here every year. Half the country's investment lands within 50 mile radius of here. When it shuts off, up and coming venture die off quickly. Unemployment spreads like wildfire. Then the green shoots hit and the market heats up again.

Having a home may be part of the equation, but I'd say the comfort comes after making it through a downturn or two. Longevity seems to trump single year earnings.

[NewbieHere]

If you make $165k and can't save, even with $2300 monthly rent, then you have a problem. My kid is paying that much and she makes a lot less. Should learn how to budget.

[BicoastalAnn]

It seems like you're arguing about apples and oranges having a common experience. They don't. You can't compare the lifestyle and costs of a single renter and that of a family who wants more space and good schools. Those 2 people are living on different planets practically even in the same Bay Area. So I have to agree with both sides... yes, SF is perfectly reasonable for a single renter/small condo owner! It's "doable." And yes, it's ridiculous for a middle class family!! Also true.

It's the same way for NYC, London, etc. It seems like people are just getting angry that they see SF becoming closer to those cities than what it was before. But no one really bothers to complain about how expensive NYC is anymore; it's a given and now it is that way in SF too. It's not Atlanta or Austin, and if one adjusts their expectations I think there might be a lot more happiness around here (and less people moving to the Bay too).

[NewbieHere]

I think it's the wealth envy. Other are billionaires, why can't I have a piece of that pie.

[neutrino78x]

Originally Posted by Perma Bear

I'm curious how you ended up lower class. Probably believing that owning a condo makes you middle class.

Well, I make $11.25/hr. That's the lower economic class.

Owning a condo -- IN THIS AREA -- is middle class. There are other areas, especially in the flyover states, where the middle class owns single family homes. But middle class here is 100k (that's the median salary) and the median home price is about one million dollars. So, obviously, owning a SFH in the Bay Area is not middle class. In the Bay Area, owning a SFH is instead upper class.

Here you go, this should be middle class housing. Two bedrooms, so one for the spouses and one for their kid. It is in Edenvale, which is considered a good residential neighborhood in San Jose. What I don't like about Edenvale is that some parts of it are too far from public transit. The price is 315k.

http://www.trulia.com/property/32297...-Jose-CA-95123

I don't see anything about "income limited" etc in here.

[thetrb]

Originally Posted by neutrino78x

Here you go, this should be middle class housing. Two bedrooms, so one for the spouses and one for their kid. It is in Edenvale, which is considered a good residential neighborhood in San Jose. What I don't like about Edenvale is that some parts of it are too far from public transit. The price is 315k.

5648 Calmor Avenue #4, San Jose, CA For Sale | Trulia.com

I don't see anything about "income limited" etc in here.

That looks terrible, I certainly wouldn't call that middle class.

[Perma Bear]

Originally Posted by neutrino78x

Well, I make $11.25/hr. That's the lower economic class.

Owning a condo -- IN THIS AREA -- is middle class. There are other areas, especially in the flyover states, where the middle class owns single family homes. But middle class here is 100k (that's the median salary) and the median home price is about one million dollars. So, obviously, owning a SFH in the Bay Area is not middle class. In the Bay Area, owning a SFH is instead upper class.

Here you go, this should be middle class housing. Two bedrooms, so one for the spouses and one for their kid. It is in Edenvale, which is considered a good residential neighborhood in San Jose. What I don't like about Edenvale is that some parts of it are too far from public transit. The price is 315k.

5648 Calmor Avenue #4, San Jose, CA For Sale | Trulia.com

I don't see anything about "income limited" etc in here.

During the next tech crash San Jose will drop to 300g and places like Hayward CA will drop to the 200s. Watch.

[Lanienguyen]

Originally Posted by Perma Bear

During the next tech crash San Jose will drop to 300g and places like Hayward CA will drop to the 200s. Watch.

Were you here during Dotcom era?
Did the housing of bay area busted after Dotcom busted?
What was the minimum wage at that time? and it's going to be $15
Certainly you did miss the 2009--2010 housing bottom.