Sacramento, California, is at the top of the list for the United States’s least affordable new homes markets! Home values in this area jumped by 21% over the last year!
A new study examining household incomes and comparing them with median new home construction mortgages found the California capital tying with cities like Miami, Florida. Eighty percent of households in the Sacramento region, same as Miami, are priced out of new homes!
The median new construction home price in the Sacramento region is $650,000, which means residents need an income of about $128,000 to afford an average down payment of $39,000. The median household income in the area is $76,706
One Sacramento real estate group owner, Kelly Pleasant, said there is a shortage of homes in the area and the market has become less competitive in the last 45 days. Instead of 10 offers (per listing), you’re seeing five offers!
This year, California reported its first yearly population decrease for the first time in the state’s history. All in, California’s population fell by more than 182,000 in 2020. Many have cited the state’s high taxes, and how some areas throughout the state are not affordable for families.