I visited San Francisco a few times for conferences and every time, it got worse and worse in terms of poverty and inequality. As a foreigner, it’s weird to see much misery in US yet the place is filled up with rich techies.
Severe failure of municipal authorities. For example, San Jose's city leadership keeps on talking about making it easier to build more living units, but my brother's ADU took 6 months just to get his blueprints approved.
I consider myself lucky then. I only make $29 an hour and the wife $31 an hour, however. After the housing crashed in 2008 we used to rent and decided it was time to buy. Even then investors and people were buying cash. We were able to buy a small house in Hayward CA $238k with only 3% down and $1600 bucks mortgage, I guess those days are gone. Houses being going up and up. My small house is now around 800k. Yes I consider myself lucky.
I’m a full time student at sjsu working a little over minimum wage for 60hrs/week and honestly I feel like a pauper living here. Rent is $2400 for a small old 2bed 1ba fourplex. I’m grateful I have this but it was hard getting it because they require me to be making 3x the rent which is crazy. After I’m done with school I’m out of here.
My wife and I were living in a minivan in the Bay Area making $120-140k combined. We bought a house in Los Angeles a few years ago with that money and the house has just about doubled in value. I’d come back to the Bay Area to fill empty non-tech jobs if the price is right but I still wouldn’t fathom buying in the bay.
@@justinh7560 I agree that it shouldn't be a necessity to live in a van but I also chose to be in a very expensive area because of pay so it comes with the territory.
With that household income you can own a decent home in the IE. I live in Moval making similar earnings and live in a 2000 sq foot 4 bedroom home with a 2 car garage paying 2.2k a month.
Unless you bought a home in San Jose like 20 years ago, it is too expensive to own one and that's the reason why you see a home with like 4 to 5 families living in there. One of the reasons why there's almost no parking and alot of traffic.
@@LucasFernandez-fk8se I can tell you're not from California. Why would anyone in the right state of mind want to build houses in the mountains?!? That's like signing a death sentence
Sold my house in Los Banos in 2016 & moved to Temple TX with population of 76k. I bought a new home of 1965 sq ft for $187k cash. Now living mortgage free & retired.
Bay Area housing is expensive for two reasons: 1) lots of high paying jobs; 2) a severe shortage of housing. If you don't make the big bucks you will be competing with those who do for a place to live. Another issue is that most of the Bay Area consists of water and mountains. There is no room for the urban area to expand. Plus, the NIMBYs, who already own homes, are against building high density housing, which is the only kind of housing that can be built in such a confined urban geography.
Which is why I tell young people that UNLESS you are in tech then you shouldn't be here in the long run. Get the cheapest housing you can which is living in a shelter for a couple of years along with picking up an employable skill in the trades and in a couple of years then you can get a good job somewhere else and BUY a single family home.
South Florida has the same problem. What happens when there is no housing left for the working class? What happens when the people who work in coffee houses or for the cleaning businesses or the taxi/ride share services or the grocery services can no longer afford to rent in the communities they serve or travel to them for work?
94% of the South Bay is covered by single family home zoning laws. Meaning you can’t build apartment complexes. It has some of the strictest zoning laws in the country so people can keep their home values up. It’s a big issue across the US but it’s very bad here.
With WFH as a new norm, there is no point in living in Bay Area at all. With these housing prices, most of the startups will move away from the BayArea anyway. Future technology is not limited to Bay Area any more.
Couldn't agree more. The concept of Silicon Valley is no longer limit to Bay Area. Companies especially start up offers remote position, the rent and home price in Bay Area won't be justified soon or later.
@@jml9550 There are companies require going back to office full time or hybrid. But there are also many companies, especially start up, offer remote positions. One of the major challenge for hiring engineers for my team is I am competing with companies offering remote position while my company requires hybrid. Some good candidates want remote and my company couldn't compete. Remote positions are real and many out there.
@@unholydonut yes I am not debating that. But Google, Apple, FB, Broadcom…….are some majors employers here. Those start ups have to offer WFH in order to compete, along with compensation and potential IPOs.
I live three hours down in San Luis Obispo County. I make $30 an hour. I STILL can't qualify for my own place because I don't make the 3x take home income requirement. It's crazy how much worse it is in the bay area.
Im a Bay Resident and higher wages mean nothing if everything else is more expensive. Not only that youre taxed more and will probably get robbed because a DA thought a violent offender needed a 32nd chance. But hey its progressive to make the poor poorer after all we voted for this
Exactly, the middle class keeps losing out. While the people at the top are the ones absorbing all the money. We get a raise? Big whoop. That extra money is not going in our pocket.
In San José i’ve noticed apartments often have more than one family living in them. Sadly that’s the only way a lot of people can afford to live out here.
All of these tech companies built their campuses on the peninsula. Workers had to buy on the peninsula if they didn't want to deal every workday with messy bridge commutes. That caused housing prices to go astronomical. If the tech companies were dispersed across the entire bay area, the traffic would be distributed more evenly, which would have moderated housing prices.
Not really. Like home prices in San Jose were up too. San Jose is a flat large swath of land like 20ish miles from San Fran downtown. It’s 60s ranch houses mostly. I think the issue is the lack of new builds in the area along with the protection of those stupid mountains from home construction.
@@mycommentskeepgettingdelet184 I get paid $25.50 an hour, I can’t even afford to live by myself unless I pay at least 50-60% of my income. And even then I wouldn’t find a studio unless it’s attached to a home or someone’s garage.
I moved the family from San Jose last September. I made $56 an hour and lived in a luxury apartment at 2500 a month. Moved to Las Vegas and the same rent is now a mortgage with enough left to save. San Jose is beautiful, but it’s slowly going down. I miss that city but had to leave.
When I was a kid a lot of the homes my friends and I grew up in were owned by cal trans,what is now the 101 freeway north and south bound were neighborhoods that were demolished in the mid 80’s and early 90’s to expand the San Jose airport and the Guadalupe expressway became the now huge 101 freeway that crosses over where the county jail and all along Coleman avenue the neighborhoods that were for the poor are gone,the county wanted to do away with the “poor” as San Jose morphed from a city of agriculture and mild industry jobs to tech,when I was a kid people’s parents worked simple jobs maybe mom was a nurse at valley med,or a yard duty at some elementary school,maybe she worked at one of San Jose’s big canneries and so did dad or he worked at United motors or the ford motor company both in Milpitas,I think there was fmc on Coleman,Westinghouse or construction,now all of that stuff is gone and so are the fields and the jobs of tank building or building ford trucks and cars of those years...tech companies came people had to keep up learn computers or get left behind,the east side and some of west San Jose still have apartments that are more fore the average regular blue collar family,places near Campbell have affordable apartments but high on gang activity,lack of pride of ownership or just caring about your neighborhood is lacking so you see stray dogs and cats,abandoning of cars,graffiti all over the place dirty streets and slum lords who don’t ever fix the dated apartment troubles,not all are techies not all are High paid lawyers and doctors not all are county workers which to me is almost like being a welfare recipient,free money from tax paying hard workers..my point is a lot of the houses in better areas were inherited and left to children born in the late 60’s and mid 70’s a lot of these kids are parents now but don’t even live I. San Jose I know a few people that live out of state but rent out the house they grew up in near the Almaden hills,no hardworking blue collar family could pay these rent fees you need to make at least 200 k a year to simply stay comfortable,unless your willing to live on the east side I’m talking about king and story east side capital park east side,you can still find a 2-3 bedroom home for under $2500 a month but expect no parking no street cleaning no city clean up along the freeways in that area,graffiti and gangs,
@@Charlesbjtown this ain’t English class but if your trying to grade papers on spelling and so forth hey get to your nearest classroom make a difference in real life not the world of TH-cam
@@ivanr4300 you guys really just have a choice,read or don’t read,as far as the time to message about proper writing so forth it’s stupid. You do know that no one is forcing any of you to read what I shared yet a few people find it so important to say,” hey you forgot to put periods and the way I write it’s really not hard to fuckin read...if you can’t read what I left then I think you guys need help more than myself because it’s TH-cam not some dam forward to some book on rock formations due to weather shifts and climate, or water and how erosion plays a part in the opinion of the Sphinx’s true age in Egypt!!!
@@ivanr4300 how about you just use your time to either comment on the matter or subject not on what I shared,I know how to write I think you mean learn how to utilize the five bases of writing correct? Yeah fuck all that this isn’t some academic application so miss me with the bull-
Chronic housing shortage? I see buildings with lots of vacant units. A housing shortage is not the issue. The issue is the cost of housing! There are a lot of vacant apartments because people live with roommates or rent rooms for $1,500 minimum !!
So why don't market forces drive prices down? Landlords lose money when their units are vacant. How do you know there are lots of vacant apartments? What is your source?
There is a false assumption that if you make new apartments/houses that this will alleviate the housing shortage by adding new units. This couldn't be any more false. New houses and apartments are some of the most expensive on the market because they go for market value. Housing doesn't go down in value...it only goes up. So not only do we have a whole bunch of new housing at market value, we also have regular housing going up in value as well. Market value is too high for most people to pay. So, what we end up with is a whole bunch of unaffordable luxury housing in the market that is unappealing to everyone. Why would a high wage worker live in luxury housing when they can save more money by living in regular housing that is just as good? It doesn't make any logical sense really. The most affective solution would be to convince landlords to lower the price of rent with some kind of incentive and penalize them for having high rents. If you have a certain amount of apartments under a certain amount of money, then you get tax breaks. If you have a certain number of units above a certain amount of money, you get taxed more. This is the language they understand and we need to learn how to speak it better. You will never be able to "build enough housing" at the end of the day.
@@felixthecat2786 you build enough new apartments, eventually you're going to run out of people to fill them. This drives down prices because supply has to compete. This is a supply issue, not a new apartment issue.
thats insane! I just bought and remodeled a 4 bedroom house on 5 acres with all new everything for $265k. Upstate NY. It appraised at $350k but still. I dont know how normal people do it in CA.
I was earning close to $200k in 2014 at Qualcomm as a Staff Engineer (BSEE from Cal Ply SLO & an MSEE from SCU). I did buy a house here in San Jose, but - honestly I feel like I’m living paycheck to paycheck. EDIT: I should have mentioned I quit Qualcomm for a low pay job - a little over $100k per year - for health reasons. I've never been happier. The point should be fairly obvious - showing how expensive this area is.
I kinda got lucky I only pay 1200$ a month for my studio with all utilities included but it’s still kinda expensive living I make 25 hourly so not to bad but pretty bad I wish things were lower though so none of us would be struggling to make money
just what will the city do when they finally price out the middle and low class people. who will they get to do the kinda jobs that these wealthy class wouldn't do themselves.
That’s just it; they don’t want to actually live amongst “those people”… They’ll just expect them to commute in the morning, then leave in the evening…
The problem is zoning laws. It’s basically illegal to build the housing we need. We need more complexes but everyone wants to keep their single family homes.
Rowhouse are good alternative lol I hate apartments so I understand some people reluctant to it. I live in a a small 952 ft rowhouse in Philadelphia and I love it
@@ianhomerpura8937 it’s a opinion. I used to live in apartment and they aren’t that great especially when you have kids or pets! The noise and everything. I prefer rowhouse
Unless you were born there, I don’t understand why anyone would move there long term other than being a multimillionaire! Every time I think homes are getting expensive, I look at home prices in the Bay Area! This video is therapy for me lol!
my heart also goes out to them... esp the descendants of Bay area families who moved there from Great Migration days of the 20th century, leaving the deep south... Perhaps... working a couple full time jobs, and living tight (like college dorm, military barrack-style) for a couple years works? A 2 bath unit to just sleep cook and clean for 5 people out working all the time, is only $10k yearly per person. Suddenly seems very affordable. Then just have to network, get skills using OJT programs to double wages, and sign up for the poverty programs to cut food, housing, and bus pass costs. Scalable? Just looking for solutions...
@@economicdevelopmentplannin8715 That's me. Grandparents migrated here from the south during the dust bowl, had kids, and raised a family. My parents bought a house in the early '90s when it was still affordable. Now I and my siblings can barely afford to stay in the place we grew up and call home but are still reluctant to leave due to a sentimental attachment to the area. It's such a painful dilemma to be in.
Over pay to live in a city of violence and homelessness, wonder why ppl can’t afford a house. I’m 26 and lucky to have parents who can help me out a bit cause if I didn’t I’d be homeless too. I work construction and make 25 dollars an hour… our country is letting us all down.
I'm glad I left San Jose. I miss it. I pay about under $700 a month on rent and utilities and make about the same money I did in san Jose. I miss the bay area though. The weather and the food
We left the bay back in 1979 when l finished High School and have never returned. I loved growing up there but that was back in the day when my mom paid $25,000 for our four bedroom home in East San Jose.
Just buy a home in other state where is really affordable and better with low taxes. 1 million people have moved out of California already and continuing.
Same here in Oahu Hawaii. Homes in my neighborhood are going for over 1 million dollars and rent is 1800 for a small studio apartment. People are renting out bedrooms for 1000 dollars. It’s pure insanity, I make close to 40 bucks a month doing IT. I can’t afford a house and there is no way I want to spend 1800 on a dinky studio. People are just living at home, saving up money. It’s not uncommon for up to 10 family members(including children) to live in one 1300 SqF home. In that setup 4 working adults working on a 30 year mortgage on a 1 million dollar home with 5% interest is about $730 dollar per month which is affordable even if they have a full time job that pays 10 dollar per hour each. I should look for work in Mainland, however in Cities with lots of high earning Tech people, the housing prices are not much different than where I live now, just 200 to 300 dollars cheaper rent, maybe slightly bigger apartments too. In order to find a place low enough to be worth while the major move would be in a desert with nothing around. There is a reason why prices are lower. It’s boring AF. Its not a bustling city.
@@youtubesucks8024 Until you run out of water. Hope Lake Mead gets better. (I like Vegas, and have friends who live there, so I hope the water (and homeless) situation improves.)
so...a house makes you happy? till you bitch about mowing the lawn, replacing the hot water heater, windows and floors need updating, carpet upstairs is dated, not enough room for the inlaws...Pool chlorination again? gotta hose down the driveway...leaves building up....on and on and on...we as a people bitch...its what we do.
Sometimes folks just have to face the thought of moving to another area where homes are more reasonable. Hint: Try OLD Bullhead City, Arizona. Rents are high, but you can STILL buy a mobile home of your own for only $100,000. That’s right, only one hundred thousand, AND that includes the land approx. 50’x100’. Seriously, you have the Colorado River is walking distance away with nine gambling casinos on the river bank on the other side in Laughlin, Nevada, 90 miles south of Vegas. There’s plenty of water sports (fishing, jet skies, etc.) and the best Springtime in the nation, IMO.
And you’re telling people this why? lol I own a home in Texas and I had to outcompete cash bids from people from states that pay way more than what I make here at a decent job. Let’s keep our secrets 🤫 we don’t want to compete more than we already do… Chinese buying up land, corporations buying up land, people from both coasts buying up land… they don’t even buy to live… they buy to rent it back to everyone else.
That thing you’re viewing this video on, handheld or desktop, that’s EXACTLY why things are incredibly expensive here. This is entirely 100%, Silicon Valley’s fault, they squeezed out the blue collar worker, this is a fact nobody is acknowledging.
I wouldn't blame Silicon Valley per se..we need tech parks in every country and region..it's just the nature of the market, the better solution is have more variety
Why would anyone live there ? I have to make 123 an hour to buy a house ? I'll move to Texas and buy a house making 25 an hour and have a Toyota sedan type car and still have money left over .
The other common trend in housing news stories today is the evictions are 99% women (single / single mothers) and / or women saying how they don’t want roommates. I see single men getting roommates and have had them pre-pandemic.
so that's at least 112K a year to rent and 255K a year to own (based on 8 hour/day of work). Yeah... I can't afford either one so I guess I'd be homeless in SJ.
My grandfather bought land and built a house. He died (1987) leaving that AND a small inheritance that my grandma is still living on now at 80. I had to borrow 10k to BUILD an 1bed appartment on my dads property because a BUYING a 1bed appt/house starts at 100k....
The housing crisis is fake. The U.S. have plenty of homes. We just have a lack of affordable housing. When I bought my first investment property in 2016 for $25,000, I put $30,000 in it to remodel and now its worth $250,000. That house was city owned sitting empty for 10 years yet no one bought it. We bought 6 homes so far this year all worth double to triple already and they all sat empty for awhile and again no one wanted them. Obviously this depends where in the U.S. you are but not everyone needs to live in the biggest cities and pay huge amounts for houses when they have a low skill job.
@@disneyplay4 well you clearly didnt read what I said. Why were all the houses I bought sitting empty for years if there is a housing crisis? Almost all of them are nearly turn key ready. There are 16 million vacant homes in the U.S. if you don't have a high skill job and cannot afford to live in a major city than move away. Don't believe in media bs.
I'm glad I moved out of San Jose. Bought a $350k home elsewhere and paid it off. Now we're debt-free and we can start saving for our kids and future. Should've moved 5 years ago and we could've save more, I was reluctant like many people.
We were in the same boat. Hesitant to move away from our cushy jobs and out of San Jose/California, knowing that we won't be able to move back because of the cost of living and housing. Took the leap of faith and moved to Texas. That was more than 7 years ago. Best decision EVER! We now own a lovely home and will have our house paid off in a few more years and saving for retirement.
Why do you think they're priced so high? Basic supply and demand. The US is at the lowest amount of available houses for sale in 40 years, aka a shortage. When the population grows at a rate X amount faster than our house building yielded, you get a shortage. Very simple.
@@MTKARusty The shortage is not on houses but rather people who can afford said houses. New housing is being developed as income levels remain the same and we're seeing an increase in unemployment. All these welfare recipients are wanting to know when they can buy houses with their foodstamp card government funding so that they can improve their quality of life off the backs of actual working Americans.
@@radfoo72 The shortage IS on houses. When 2008 hit two of the largest lumber mills closed, and from 2008-2010 we essentially didn't build anything bc the market was flooded with houses that went under due to defaulting on subprime mortgages. That put the housing production allotment about 3years behind demand. Fast forward to COVID where construction and building supplies took another hit due to supply chain issues and cost, which put us even further behind. Now, with a hot job market, low interest rates, the ability to work remotely, boomers dying off and passing down their assets to their kids (aka the "Great Wealth Transfer"), and the largest-by-population size demographic coming into home buying age (millennials) demand has absolutely sky rocketed for a product that we don't have nearly enough of due to the factors I outlined above. This comes full circle to very basic principles of supply and demand.
@@MTKARusty There are lots of empty houses not being bought simply because consumers don't want to pay current market prices with inflation on the rise. If you look according to the Case-Shiller index the typical house is up 19.2% year over year. Covid did not directly cause supply chain issues as far as lumber and construction. In 2020 when businesses started lockdowns many lumber mills bet against 2021's economy consequently slowing and even halting usual rate of production because they assumed there would not be as much demand for new housing in 2021 with covid restrictions suffocating other markets. In hindsight they were wrong and their folly resulted in manipulated supply shortage which lead to the price of lumber increasing causing housing costs to rise with the tide. Covid was not the cause rather a poor excuse for bad judgment that had a domino effect of consequences of which we're still paying for today. Don't forget that part of "The Great Wealth Transfer" includes transference of physical assets as well such as Houses that often times get passed down so that they can stay in the family which quels some of what would otherwise be market demand for housing.
I wonder how multimillionaires/billionaires are going to live in the Bay Area when the poor keeps breaking/entering their homes to steal their belongings. I guess if money is no object, they can hire 24/7 security guards, hundreds of them guarding their homes.
Well actually the minimum wage in California is going up too, but yeah, what difference does it make when everything goes up too? All the money goes to the top
It's called minimum wage for a reason lol. It's only there so employers won't face lawsuits, and keep a standard (more like substandard) for morality in society. It's there so people won't get paid less, that's it.
The reason we have a housing shortage is because home owners here keep voting on laws that make it harder to build more homes because they want to keep their prices high. Also Airbnb, and Chinese home investors.
Chinese retail investors are nothing / you see them at open houses and think it’s their fault. The real cash influx are those who don’t show their faces / the buy en bloc, off market, and clandestine / the institutional Wall Street investors who are now buying real estate as an asset class - like gold - and are not buying them to live in but to make money or hold for long term investing. Stop with the Chinese investor blamed / why aren’t you blaming the american sellers who are selling to the highest bidder and getting rich?
@@whereaboutsunknown3822 Thanks for recognizing that. I'm just frustrated at people pointing at the Chinese for causing the problems everywhere in the world. In America, the American rich people love doing business with the Chinese. American sellers get rich from selling their house to the highest bidder. American investors get rich from driving the asset market up because there are Chinese buyers. America's everyday Joe's pension fund holders get rich from seeing their 401K up, because American companies are doing well doing business with cheap labor in China thereby increasing the profit merging. America's families can buy things from Target and Walmart more cheaply because they are made in China. In every area of the economy, America has benefited from the Chinese rise. Let me ask the critics: Did China come to America and point a gun at America and say, "I force you to do business with me?" No. Yet, some Americans are blaming China for everything: Covid, Housing, Job loss, Brain drain, the environment, global warming, etc. Politicians like Trump have personally benefitted from doing business from China (Ivanka Trump's shoes, Donald Trump's buildings, Jared Kushner's Manhattan real estates) have all benefited from China. But to win the voter's favors, especially those poorer voter's favors, American politicians have led the battle cry that "It's all China's fault." Were China to completely withdraw its business dealings and investments in America - that's when America will REALLY Collapse. The sooner America can start recognizing the inevitable that China is going to be the next equal super power, the more the two countries can cooperate - that would be the smarter approach.
@@joannabusinessaccount7293 Calm down. I should have used the word "foreign investors". I don't mean to solely attack China. I just said Chinese because I think they are the most prevalent foreign investor investing in American real estate. But yeah there are others too. And you're right, it has to do with American policies that allow foreign investors in the first place. So anyway, I'm not trying to say China is the problem. Well, if you're going to speak of China, I will say that I have nothing against Chinese people. But the Chinese Government royally sucks ass.
You guys need to get more housing and bring an end to all the NIMBY regulations. The Bay Area is super cool, but I couldn’t move out there for less than 250k a year now.
0:56 I agree. I used to love the state in which I was born & raised, but the rent, the Bill's, can't find a decent job, and the traffic is a _gargantuan clusterfuck, 24/7!_ Heads up, everyone: there are _entire_ housing developments sitting in San Ramon. _EMPTY._ Those in power, with _all_ the money.. have figured out how to gentrify an entire region.
Pretty ballsy to say on live TV that you're moving from Cali to Idaho. Just going to go screw up a different economy by inflating the housing market with your $50K over asking price CASH offers...
you know I guess I probably shouldn’t even say anything because I’ve never been to California but if I’m not living right by the water......the videos,pictures, articles like this I’ve seen it mostly looks like any other city in America (yes I know y’all have wine country and the movies that’s not what I’m talking about I’m talking about densely populated cities in California to me it looks like any municipality right here in Atlanta)I don’t see what’s the big hoopla unless you are working for tech Giants but still there needs to be some regulation I will never live in California or New York I laugh at the prices......in Georgia I live very close to falcon Stadium yes the houses are high because it’s Midtown but I would say 40 miles outside of Atlanta you can get a 6 to 7 bedroom for less than 600,000 easy and possibly even a three car garage and adequate land front and backyard
my heart also goes out to them... esp the descendants of Bay area families who moved there from Great Migration days of the 20th century, leaving the deep south... Perhaps... working a couple full time jobs, and living tight (like college dorm, military barrack-style) for a couple years works? A 2 bath unit to just sleep cook and clean for 5 people out working all the time, is only $10k yearly per person. Suddenly seems very affordable. Then just have to network, get skills using OJT programs to double wages, and sign up for the poverty programs to cut food, housing, and bus pass costs. Just looking for solutions...
Renting, in general, is dangerous. If prices go up, like they are now, you have no control over that. In some places, there are limits to how much rent can increase, but in many, there are not. I'd much rather have a house. Sure, you've got to fix everything yourself, but you learn. I do all of the plumbing and electrical on my house myself. There's no better feeling than knowing that no matter how much rents go up and down, your costs are fixed. And when you pay off the mortgage? You're done!
As a plumber who makes about 45 an hour and that’s just frickin crazy and I live in New Jersey. It ain’t cheap here at all. But damn y’all are crazy out there.
Can someone explain???? If we are suffering from a housing shortage.... which is claimed to be chronic and ongoing.... then WHERE are the people who allegedly need this housing currently living?
Foreigners, especially China money flooded into the bay. They bid higher and paid in cash to buy not only one house, but DOZENS. Of course with growing number of transactions, realtors and investors were happy while they did not think about what will happen down the road to locals.
MadeforMore that sounds racist. whats next, close the borders so mexicans cant bid on apartment rooms and lower prices? nah man we need to let in 10 million migrants per year. from all over the world. think of all the yummy ethnic food theyll bring!
I'm wondering does anyone know about how much those houses shown cost. I moved from Ohio to Western Illinois last summer to a very comparable house that's pictured in the video because of the tax friendliness of Illinois. Yes you heard that right tax friendliness of Illinois they don't tax any types of retirement income in Illinois. I had always heard that housing was high in California and was just wondering. And I will admit I only looked at the Midwest states but I did look at the things I have and things I purchased to determine the true cost. I was surprised to see all the hidden taxes that states have. If your wondering I payed 60,000 for the house but it is completely updated.
Lol I’m not sure which “admins” you’re talking about. I know several who work for the largest tech companies in the Bay Area, and they make less than half of the wages required to afford housing. Unless you have an engineering degree or similar, big tech doesn’t pay what you think it does.
@@davonmonroe188 It depends on what you mean by admin. If you are talking CCIE then it is believable. A run of the mill admin at Google won't be making $150K a year.
I visited San Francisco a few times for conferences and every time, it got worse and worse in terms of poverty and inequality. As a foreigner, it’s weird to see much misery in US yet the place is filled up with rich techies.
"it turns out that making it in the bay requires a heavily hourly wage" ... groundbreaking reporting right there....
That’s been pretty much true since the 1980s! So, this is seriously nothing new in reporting. Haha!
So.. are we really going to act like homelessness is the fault of the individual? Have you event made more than $20?
LOL, on other news, the Pope is Catholic!
True. So funny 😂 and so on top of it media.
So funny, what a disgrace this has gotten, what about the younger generation, so so sad
Severe failure of municipal authorities. For example, San Jose's city leadership keeps on talking about making it easier to build more living units, but my brother's ADU took 6 months just to get his blueprints approved.
They lie every day about affordable housing.
Cost for a homeless person unit is now $800,000 each , go figure
Lawyers charge by the hour. Be patient. It's only decades away.
Love the honesty.. why are you moving? “Because it sucks here”. I feel your pain.
But the weather!
@@lilaznkid4ever You need to travel more if you think SF has that good of a weather…
@@Chr1s808 SJ weather isn't too 😔
I consider myself lucky then.
I only make $29 an hour and the wife $31 an hour, however. After the housing crashed in 2008 we used to rent and decided it was time to buy.
Even then investors and people were buying cash.
We were able to buy a small house in Hayward CA
$238k with only 3% down and $1600 bucks mortgage, I guess those days are gone. Houses being going up and up. My small house is now around 800k. Yes I consider myself lucky.
*myself
1600k would be 1.6M I assume that’s not the mortgage
@@krassimirpetrov7131 you are right.
$1600 bucks...
Insurance and tax included.
Not a bad deal I suppose.
You guys still make a little bit.
DO NOT SELL IT !!
I’m a full time student at sjsu working a little over minimum wage for 60hrs/week and honestly I feel like a pauper living here. Rent is $2400 for a small old 2bed 1ba fourplex. I’m grateful I have this but it was hard getting it because they require me to be making 3x the rent which is crazy. After I’m done with school I’m out of here.
How do you work 60 hrs a week? I’m trying to work as much too but I heard it’s illegal to work that many hours
@@Phonoodles408 Anything over 40 hours is overtime. I work 50-60 hours a week average.
@@nolimitsouldier09 it’s crazy how many hours people work per week and they’re still not rich!
@@Phonoodles408 you don’t become rich working .. working if just to pay your bills and save for retirement if you can..
Damn, I wish you the best. You are a hard worker and I admire that..I hope you leave and live a better life elsewhere
My wife and I were living in a minivan in the Bay Area making $120-140k combined. We bought a house in Los Angeles a few years ago with that money and the house has just about doubled in value. I’d come back to the Bay Area to fill empty non-tech jobs if the price is right but I still wouldn’t fathom buying in the bay.
I wish we lived in a society where you guys didn't have to live in a van. It's kind of outrageous
@@justinh7560 I agree that it shouldn't be a necessity to live in a van but I also chose to be in a very expensive area because of pay so it comes with the territory.
Don’t come to the bay
With that household income you can own a decent home in the IE. I live in Moval making similar earnings and live in a 2000 sq foot 4 bedroom home with a 2 car garage paying 2.2k a month.
@@jayman4268 Now we own a 1600 sqft house 2 car garage in Monterey Park
“It sucks here” truer words have never been spoken.
Unless you bought a home in San Jose like 20 years ago, it is too expensive to own one and that's the reason why you see a home with like 4 to 5 families living in there. One of the reasons why there's almost no parking and alot of traffic.
Why? San Jose's residential areas are 95% single family homes.
Upzone them now.
@@ianhomerpura8937 why not get rid of those dumb nature preserve mountains and actually allow tens of thousands of new homes on the hills to be built?
@@LucasFernandez-fk8se you really want people to get cooked by wildfires, eh?
@@LucasFernandez-fk8se I can tell you're not from California. Why would anyone in the right state of mind want to build houses in the mountains?!? That's like signing a death sentence
Sold my house in Los Banos in 2016 & moved to Temple TX with population of 76k. I bought a new home of 1965 sq ft for $187k cash. Now living mortgage free & retired.
Los Banos is basically Tx.. so an even swap........
It does suck here. Housing, homelessness, crime, drugs. Time to leave
Just don't go voting democRAT and ruin it for others!
California is a big state
Progressive liberal policies, and Silicon Valley squeezing the blue collar worker out of existence, that’s exactly why we’re in this mess.
@@lsgrosieh lol you’re too late
@@KittensgiveMorbogas it’s not like southern states are any better lol this country is collectively going down
The Bay Area is not fisable for anyone that earns hourly wages.
It needs to be a “heavily hourly wage”
Bay Area housing is expensive for two reasons: 1) lots of high paying jobs; 2) a severe shortage of housing. If you don't make the big bucks you will be competing with those who do for a place to live. Another issue is that most of the Bay Area consists of water and mountains. There is no room for the urban area to expand. Plus, the NIMBYs, who already own homes, are against building high density housing, which is the only kind of housing that can be built in such a confined urban geography.
Which is why I tell young people that UNLESS you are in tech then you shouldn't be here in the long run. Get the cheapest housing you can which is living in a shelter for a couple of years along with picking up an employable skill in the trades and in a couple of years then you can get a good job somewhere else and BUY a single family home.
well said.
South Florida has the same problem. What happens when there is no housing left for the working class? What happens when the people who work in coffee houses or for the cleaning businesses or the taxi/ride share services or the grocery services can no longer afford to rent in the communities they serve or travel to them for work?
@@jmcnally647 You either pay enough to do the job or the job doesn't get done.
94% of the South Bay is covered by single family home zoning laws. Meaning you can’t build apartment complexes. It has some of the strictest zoning laws in the country so people can keep their home values up. It’s a big issue across the US but it’s very bad here.
With WFH as a new norm, there is no point in living in Bay Area at all. With these housing prices, most of the startups will move away from the BayArea anyway. Future technology is not limited to Bay Area any more.
Couldn't agree more. The concept of Silicon Valley is no longer limit to Bay Area. Companies especially start up offers remote position, the rent and home price in Bay Area won't be justified soon or later.
WFH is not the norm anymore. Companies are requiring workers to do at least 3 days in office. I can see that during commute hours now.
@@jml9550 There are companies require going back to office full time or hybrid. But there are also many companies, especially start up, offer remote positions. One of the major challenge for hiring engineers for my team is I am competing with companies offering remote position while my company requires hybrid. Some good candidates want remote and my company couldn't compete. Remote positions are real and many out there.
@@unholydonut yes I am not debating that. But Google, Apple, FB, Broadcom…….are some majors employers here. Those start ups have to offer WFH in order to compete, along with compensation and potential IPOs.
Not true. Google, Apple, Netflix, and Microsoft is requiring employees to come back to the office. The only exception is Meta.
Unbelievable that someone who takes home $10,000/month is poor here. Oh the wonderful Bay Area…
I live three hours down in San Luis Obispo County. I make $30 an hour. I STILL can't qualify for my own place because I don't make the 3x take home income requirement. It's crazy how much worse it is in the bay area.
@Francisco Abedano I'm an accountant.
Got even more ridiculous! I make 37! Still live at home! Plan is to move to Washington!
The rent multiplier is a joke. I had a place that wanted 5x rent, I told them to F-off.
Im a Bay Resident and higher wages mean nothing if everything else is more expensive. Not only that youre taxed more and will probably get robbed because a DA thought a violent offender needed a 32nd chance. But hey its progressive to make the poor poorer after all we voted for this
Exactly, the middle class keeps losing out. While the people at the top are the ones absorbing all the money. We get a raise? Big whoop. That extra money is not going in our pocket.
In San José i’ve noticed apartments often have more than one family living in them. Sadly that’s the only way a lot of people can afford to live out here.
All of these tech companies built their campuses on the peninsula. Workers had to buy on the peninsula if they didn't want to deal every workday with messy bridge commutes. That caused housing prices to go astronomical. If the tech companies were dispersed across the entire bay area, the traffic would be distributed more evenly, which would have moderated housing prices.
Stop making sense. You are being watched.
Not really. Like home prices in San Jose were up too. San Jose is a flat large swath of land like 20ish miles from San Fran downtown. It’s 60s ranch houses mostly. I think the issue is the lack of new builds in the area along with the protection of those stupid mountains from home construction.
@@LucasFernandez-fk8se Yeah! Kill the land! Bulldoze whatever remains of the natural beauty, all of it! Yeah!
I pay 2400 in San Jose and that still is considered “cheap” .. it’s ridiculous out here 🤬
It's called MOVING.
Move and be happier @ Michelle Zuniga
I get paid 15$ an hour.. thats not enough
@@sfrealestatedealmaker6001 if I wanted to move I would have. I love living in the Bay, I just don’t love what it costs to live here 🤷🏻♀️
@@mycommentskeepgettingdelet184 I get paid $25.50 an hour, I can’t even afford to live by myself unless I pay at least 50-60% of my income. And even then I wouldn’t find a studio unless it’s attached to a home or someone’s garage.
I moved the family from San Jose last September. I made $56 an hour and lived in a luxury apartment at 2500 a month. Moved to Las Vegas and the same rent is now a mortgage with enough left to save. San Jose is beautiful, but it’s slowly going down. I miss that city but had to leave.
When I was a kid a lot of the homes my friends and I grew up in were owned by cal trans,what is now the 101 freeway north and south bound were neighborhoods that were demolished in the mid 80’s and early 90’s to expand the San Jose airport and the Guadalupe expressway became the now huge 101 freeway that crosses over where the county jail and all along Coleman avenue the neighborhoods that were for the poor are gone,the county wanted to do away with the “poor” as San Jose morphed from a city of agriculture and mild industry jobs to tech,when I was a kid people’s parents worked simple jobs maybe mom was a nurse at valley med,or a yard duty at some elementary school,maybe she worked at one of San Jose’s big canneries and so did dad or he worked at United motors or the ford motor company both in Milpitas,I think there was fmc on Coleman,Westinghouse or construction,now all of that stuff is gone and so are the fields and the jobs of tank building or building ford trucks and cars of those years...tech companies came people had to keep up learn computers or get left behind,the east side and some of west San Jose still have apartments that are more fore the average regular blue collar family,places near Campbell have affordable apartments but high on gang activity,lack of pride of ownership or just caring about your neighborhood is lacking so you see stray dogs and cats,abandoning of cars,graffiti all over the place dirty streets and slum lords who don’t ever fix the dated apartment troubles,not all are techies not all are High paid lawyers and doctors not all are county workers which to me is almost like being a welfare recipient,free money from tax paying hard workers..my point is a lot of the houses in better areas were inherited and left to children born in the late 60’s and mid 70’s a lot of these kids are parents now but don’t even live I. San Jose I know a few people that live out of state but rent out the house they grew up in near the Almaden hills,no hardworking blue collar family could pay these rent fees you need to make at least 200 k a year to simply stay comfortable,unless your willing to live on the east side I’m talking about king and story east side capital park east side,you can still find a 2-3 bedroom home for under $2500 a month but expect no parking no street cleaning no city clean up along the freeways in that area,graffiti and gangs,
This was absolutely brutal to try reading.
@@Charlesbjtown this ain’t English class but if your trying to grade papers on spelling and so forth hey get to your nearest classroom make a difference in real life not the world of TH-cam
Learn how to write
It’s a long run on sentence
@@ivanr4300 you guys really just have a choice,read or don’t read,as far as the time to message about proper writing so forth it’s stupid. You do know that no one is forcing any of you to read what I shared yet a few people find it so important to say,” hey you forgot to put periods and the way I write it’s really not hard to fuckin read...if you can’t read what I left then I think you guys need help more than myself because it’s TH-cam not some dam forward to some book on rock formations due to weather shifts and climate, or water and how erosion plays a part in the opinion of the Sphinx’s true age in Egypt!!!
@@ivanr4300 how about you just use your time to either comment on the matter or subject not on what I shared,I know how to write I think you mean learn how to utilize the five bases of writing correct? Yeah fuck all that this isn’t some academic application so miss me with the bull-
Chronic housing shortage?
I see buildings with lots of vacant units. A housing shortage is not the issue. The issue is the cost of housing! There are a lot of vacant apartments because people live with roommates or rent rooms for $1,500 minimum !!
So why don't market forces drive prices down? Landlords lose money when their units are vacant. How do you know there are lots of vacant apartments? What is your source?
@@tltaber50 driving by them every day lol listings and signs up too
a lot of high-end apartments being built too
There is a false assumption that if you make new apartments/houses that this will alleviate the housing shortage by adding new units. This couldn't be any more false. New houses and apartments are some of the most expensive on the market because they go for market value. Housing doesn't go down in value...it only goes up. So not only do we have a whole bunch of new housing at market value, we also have regular housing going up in value as well. Market value is too high for most people to pay. So, what we end up with is a whole bunch of unaffordable luxury housing in the market that is unappealing to everyone. Why would a high wage worker live in luxury housing when they can save more money by living in regular housing that is just as good?
It doesn't make any logical sense really. The most affective solution would be to convince landlords to lower the price of rent with some kind of incentive and penalize them for having high rents. If you have a certain amount of apartments under a certain amount of money, then you get tax breaks. If you have a certain number of units above a certain amount of money, you get taxed more.
This is the language they understand and we need to learn how to speak it better. You will never be able to "build enough housing" at the end of the day.
@@felixthecat2786 you build enough new apartments, eventually you're going to run out of people to fill them. This drives down prices because supply has to compete. This is a supply issue, not a new apartment issue.
Google is buying up land in san Carlos area and people who need the money are selling to this giant tech company.
thats insane! I just bought and remodeled a 4 bedroom house on 5 acres with all new everything for $265k. Upstate NY. It appraised at $350k but still. I dont know how normal people do it in CA.
I went to school there it’s hell
Bought a home decades ago or 30 yr old families with an income >300k working in tech….
They dont
I was earning close to $200k in 2014 at Qualcomm as a Staff Engineer (BSEE from Cal Ply SLO & an MSEE from SCU). I did buy a house here in San Jose, but - honestly I feel like I’m living paycheck to paycheck. EDIT: I should have mentioned I quit Qualcomm for a low pay job - a little over $100k per year - for health reasons. I've never been happier. The point should be fairly obvious - showing how expensive this area is.
You will be first homeless millionaire
sounds like you mismanage your spending
I honestly can't feel sorry for you.
So why don't you work remote at least? Save some money.
@@infini.tesimo - I work remote exclusively.
I kinda got lucky I only pay 1200$ a month for my studio with all utilities included but it’s still kinda expensive living I make 25 hourly so not to bad but pretty bad I wish things were lower though so none of us would be struggling to make money
Which part of the city are you in? How long ago did you start renting that did the price go up?
@@zam2050 San Jose area and no it didn’t go up
@@OnlySORA888 yeah but which part of san jose? East side?
Crazy to think that the average salary of a primary care physician is barely enough to own a home in SJ - assuming you don't have student loans.
just what will the city do when they finally price out the middle and low class people. who will they get to do the kinda jobs that these wealthy class wouldn't do themselves.
That’s just it; they don’t want to actually live amongst “those people”… They’ll just expect them to commute in the morning, then leave in the evening…
Simple. Wages go UP or the job doesn't get done.
that's why you need an open border, to create indentured servants to replace the people leaving.
You can move, but the problem is everywhere. They are squeezing the life out of everyone.
The problem is zoning laws. It’s basically illegal to build the housing we need. We need more complexes but everyone wants to keep their single family homes.
Rowhouse are good alternative lol I hate apartments so I understand some people reluctant to it. I live in a a small 952 ft rowhouse in Philadelphia and I love it
@@luiscruz679 I really don't get the hate against apartments that you won't live in. Why though?
@@ianhomerpura8937 it’s a opinion. I used to live in apartment and they aren’t that great especially when you have kids or pets! The noise and everything. I prefer rowhouse
Instead of buying a house for $2M in San Jose, buy 10 houses in the Midwest for $200K each and rent 9 of them out.
We don't want your California plague spreading here. Stay on the coast.
Yes, exactly.
@@nineangels7572 hi nine angels!
Agreed, that's exactly what I would do if I could afford a 2 million dollar home.
Or don't
Unless you were born there, I don’t understand why anyone would move there long term other than being a multimillionaire! Every time I think homes are getting expensive, I look at home prices in the Bay Area! This video is therapy for me lol!
my heart also goes out to them... esp the descendants of Bay area families who moved there from Great Migration days of the 20th century, leaving the deep south... Perhaps... working a couple full time jobs, and living tight (like college dorm, military barrack-style) for a couple years works? A 2 bath unit to just sleep cook and clean for 5 people out working all the time, is only $10k yearly per person. Suddenly seems very affordable. Then just have to network, get skills using OJT programs to double wages, and sign up for the poverty programs to cut food, housing, and bus pass costs. Scalable? Just looking for solutions...
@@economicdevelopmentplannin8715 That's me. Grandparents migrated here from the south during the dust bowl, had kids, and raised a family. My parents bought a house in the early '90s when it was still affordable. Now I and my siblings can barely afford to stay in the place we grew up and call home but are still reluctant to leave due to a sentimental attachment to the area. It's such a painful dilemma to be in.
@@danielpeoples9446 can you please make a quick video on TH-cam talking about this. Then reply here when you did it. I might be able to help.
No! No! Not Idaho!!! It’s horrible here!!!
Over pay to live in a city of violence and homelessness, wonder why ppl can’t afford a house. I’m 26 and lucky to have parents who can help me out a bit cause if I didn’t I’d be homeless too. I work construction and make 25 dollars an hour… our country is letting us all down.
And so many of them are coming to Vegas and driving home prices way up, please go to Austin
14 months into pandemic houses $400k. 2019 houses $124k. Amreeika is crzazy
Lived in the apple city, moved to Houston in 2015. California is expensive, but beautiful.
I'm glad I left San Jose. I miss it. I pay about under $700 a month on rent and utilities and make about the same money I did in san Jose. I miss the bay area though. The weather and the food
$700, wow..may I ask where are you now?
Be my girl and I will bring you back to the bay area :)
Dont tell these californians where you live. theyll show up with rainbow flags and george floyds shirts and start doing drugs in broad daylight
@@FactStorm literally anywhere else thats not newyork LOL
@@FactStorm here in san antonio you can get a luxury apartment for $1000 a month
We left the bay back in 1979 when l finished High School and have never returned. I loved growing up there but that was back in the day when my mom paid $25,000 for our four bedroom home in East San Jose.
when she gets to Idaho...it'll suck there too. EVERYWHERE is high priced....
Many millennials are already priced out for the wages here. Ridiculously expensive here atm. 😑
@@3asy_as_123 bummer
"Why're you moving?"
"Cause it sucks here"
😆
The sad part is , land is not scarce in San Jose ..
Just buy a home in other state where is really affordable and better with low taxes. 1 million people have moved out of California already and continuing.
Same here in Oahu Hawaii. Homes in my neighborhood are going for over 1 million dollars and rent is 1800 for a small studio apartment. People are renting out bedrooms for 1000 dollars. It’s pure insanity, I make close to 40 bucks a month doing IT. I can’t afford a house and there is no way I want to spend 1800 on a dinky studio.
People are just living at home, saving up money. It’s not uncommon for up to 10 family members(including children) to live in one 1300 SqF home. In that setup 4 working adults working on a 30 year mortgage on a 1 million dollar home with 5% interest is about $730 dollar per month which is affordable even if they have a full time job that pays 10 dollar per hour each.
I should look for work in Mainland, however in Cities with lots of high earning Tech people, the housing prices are not much different than where I live now, just 200 to 300 dollars cheaper rent, maybe slightly bigger apartments too. In order to find a place low enough to be worth while the major move would be in a desert with nothing around. There is a reason why prices are lower. It’s boring AF. Its not a bustling city.
I left the bay area 7 years ago. Bought a house and never been happier.
Where?
@@rawtruthisahardpilltoswall6180 Vegas and Phoenix. Your money goes so much further and the quality of life is unmatched.
@@youtubesucks8024 Until you run out of water. Hope Lake Mead gets better. (I like Vegas, and have friends who live there, so I hope the water (and homeless) situation improves.)
You made the right move at right time
so...a house makes you happy? till you bitch about mowing the lawn, replacing the hot water heater, windows and floors need updating, carpet upstairs is dated, not enough room for the inlaws...Pool chlorination again? gotta hose down the driveway...leaves building up....on and on and on...we as a people bitch...its what we do.
Glad I’m in Texas 💪
In texas paying 2400 for rent can get you a 2 story, 4 bedroom home with 2 car garage, huge backyard also.
Glad you are as well!
Sometimes folks just have to face the thought of moving to another area where homes are more reasonable. Hint: Try OLD Bullhead City, Arizona. Rents are high, but you can STILL buy a mobile home of your own for only $100,000. That’s right, only one hundred thousand, AND that includes the land approx. 50’x100’. Seriously, you have the Colorado River is walking distance away with nine gambling casinos on the river bank on the other side in Laughlin, Nevada, 90 miles south of Vegas. There’s plenty of water sports (fishing, jet skies, etc.) and the best Springtime in the nation, IMO.
I have been saying that for years. In the days of remote work then you are no longer tied down to a particular location.
And you’re telling people this why? lol I own a home in Texas and I had to outcompete cash bids from people from states that pay way more than what I make here at a decent job. Let’s keep our secrets 🤫 we don’t want to compete more than we already do… Chinese buying up land, corporations buying up land, people from both coasts buying up land… they don’t even buy to live… they buy to rent it back to everyone else.
@@angelinimartini EXACTLY
It's too hot in AZ
Now it makes sense why people are robbing people in the Bay Area.
😆
Gotta make that 💵 💰
That thing you’re viewing this video on, handheld or desktop, that’s EXACTLY why things are incredibly expensive here. This is entirely 100%, Silicon Valley’s fault, they squeezed out the blue collar worker, this is a fact nobody is acknowledging.
It’s called the future or would you rather be back with horse and carriages? There are 3rd world countries where people can escape these trappings.
You mean capitalism?
Agreed!!
I wouldn't blame Silicon Valley per se..we need tech parks in every country and region..it's just the nature of the market, the better solution is have more variety
@@FactStorm exactly. Without silicone valley we wouldn’t have these gadgets and platforms.
$125 hours for 30 years
do you think your BOSS will keep YOU for 30 years
Lots of people live there, someones making that much money
@1:03 Is there a car driving without a hood? Wow they are different in San Jose.
Idaho really when winter comes it really will suck there, and u will miss that lovely bay area weather
everyone is talking about this issue but what are they doing to fix this?
they really don't want to fix the issue, it just gives them something to constantly promise campaign every cycle.
As somebody who doesn’t live in California this is absolutely amazing
Why would anyone live there ? I have to make 123 an hour to buy a house ? I'll move to Texas and buy a house making 25 an hour and have a Toyota sedan type car and still have money left over .
weather, geography. have more money than they know what to do with.
My dad bought his house in 2015 making 15$ and hour 🤣🤣
Glad I left San Jose last year for beautiful South Florida
Hourly income never gets you very far. You need RSU
The other common trend in housing news stories today is the evictions are 99% women (single / single mothers) and / or women saying how they don’t want roommates. I see single men getting roommates and have had them pre-pandemic.
what is RSU
?
Stock from company you work for, giving to you
so that's at least 112K a year to rent and 255K a year to own (based on 8 hour/day of work). Yeah... I can't afford either one so I guess I'd be homeless in SJ.
I live in a 300 sq ft studio apartment in East Palo Alto for $1700 a month and I have two full time jobs
In texas you can afford a 300k house with a mortgage payment of $1600
My grandfather bought land and built a house. He died (1987) leaving that AND a small inheritance that my grandma is still living on now at 80. I had to borrow 10k to BUILD an 1bed appartment on my dads property because a BUYING a 1bed appt/house starts at 100k....
Plenty of real estate in Nebraska, there’s a reason Hawaii is expensive. It’s nice there.
The housing crisis is fake. The U.S. have plenty of homes. We just have a lack of affordable housing. When I bought my first investment property in 2016 for $25,000, I put $30,000 in it to remodel and now its worth $250,000. That house was city owned sitting empty for 10 years yet no one bought it. We bought 6 homes so far this year all worth double to triple already and they all sat empty for awhile and again no one wanted them. Obviously this depends where in the U.S. you are but not everyone needs to live in the biggest cities and pay huge amounts for houses when they have a low skill job.
That’s why there’s a crisis, too many people are seeing homes as an investment, not as shelter as it used to be.
@@disneyplay4 well you clearly didnt read what I said. Why were all the houses I bought sitting empty for years if there is a housing crisis? Almost all of them are nearly turn key ready. There are 16 million vacant homes in the U.S. if you don't have a high skill job and cannot afford to live in a major city than move away. Don't believe in media bs.
a 6 figure salary in California is like 50k in the Midwest
Be sensible. $54/hr for a 2-bedroom apartment means you should have a roommate. This has been the norm since Friends started airing in the 90s.
A couple years ago, a Subway manager was making $7.84 an hour in Cincinnati, Ohio. Not even close to the $124.00 an hour needed for San Jose.
And you can probably buy a house in Cincinnati making $7.84 an hour.
@@hoapres Short answer- yes. $30,000 condos in year 2017. That's $300 a month for mortgage and property taxes.
Wow..I either don't believe this, or think that manager got cheated
@@FactStorm It's Ohio.
@@weareorigin Yikes..that's shocking.
I'm glad I moved out of San Jose. Bought a $350k home elsewhere and paid it off. Now we're debt-free and we can start saving for our kids and future. Should've moved 5 years ago and we could've save more, I was reluctant like many people.
where did you moved to?
@@pitech4446 I recommend south Texas, you can buy a new construction home with 400k
We were in the same boat. Hesitant to move away from our cushy jobs and out of San Jose/California, knowing that we won't be able to move back because of the cost of living and housing. Took the leap of faith and moved to Texas. That was more than 7 years ago. Best decision EVER! We now own a lovely home and will have our house paid off in a few more years and saving for retirement.
It’s because tax in California is high.
It’s because many people in the Bay Area make over six figures
@@lemondrop7305 six figures in Bay Area is not enough to rent a place. They need to tax people with seven figure.
I make a professional wage, its not enough to buy, and poor if you rent
It's not a housing shortage.
The housing exists
but is being priced so high
that nobody can afford it!
Why do you think they're priced so high? Basic supply and demand. The US is at the lowest amount of available houses for sale in 40 years, aka a shortage. When the population grows at a rate X amount faster than our house building yielded, you get a shortage. Very simple.
@@MTKARusty
The shortage is not on houses
but rather people who can afford said houses. New housing is being developed as income levels remain the same and we're seeing an increase in unemployment.
All these welfare recipients are wanting to know when they can buy houses with their foodstamp card government funding so that they can improve their quality of life
off the backs of actual working Americans.
@@radfoo72 The shortage IS on houses. When 2008 hit two of the largest lumber mills closed, and from 2008-2010 we essentially didn't build anything bc the market was flooded with houses that went under due to defaulting on subprime mortgages. That put the housing production allotment about 3years behind demand. Fast forward to COVID where construction and building supplies took another hit due to supply chain issues and cost, which put us even further behind. Now, with a hot job market, low interest rates, the ability to work remotely, boomers dying off and passing down their assets to their kids (aka the "Great Wealth Transfer"), and the largest-by-population size demographic coming into home buying age (millennials) demand has absolutely sky rocketed for a product that we don't have nearly enough of due to the factors I outlined above. This comes full circle to very basic principles of supply and demand.
@@MTKARusty
There are lots of empty houses not being bought simply because consumers don't want to pay current market prices with inflation on the rise.
If you look
according to the Case-Shiller index
the typical house is up 19.2% year over year.
Covid did not directly cause supply chain issues as far as lumber and construction.
In 2020 when businesses started lockdowns
many lumber mills bet against 2021's economy consequently slowing and even halting usual rate of production because they assumed there would not be as much demand for new housing in 2021
with covid restrictions suffocating other markets.
In hindsight they were wrong and their folly resulted in manipulated supply shortage which lead to the price of lumber increasing causing housing costs to rise with the tide.
Covid was not the cause rather a poor excuse for bad judgment that had a domino effect of consequences of which we're still paying for today.
Don't forget that part of
"The Great Wealth Transfer"
includes transference of physical assets as well such as Houses that often times get passed down so that they can stay in the family which quels some of what would otherwise be market demand for housing.
why don't we talk about how wallstreet is BUYING real estate, which in some countries like in EU; is illegal.
This is known as gentrification. You can thank the tech companies.
Yes indeed
I wonder how multimillionaires/billionaires are going to live in the Bay Area when the poor keeps breaking/entering their homes to steal their belongings. I guess if money is no object, they can hire 24/7 security guards, hundreds of them guarding their homes.
It was pricy back in the 1960s.
Leave people
all that for rent not including the risk of getting your car broken into. it’s ridiculous in san jose
That's one reason I moved form there san antonio texas is where it's at
It's sad that the minimum wage won't go up but everything else does!
Well actually the minimum wage in California is going up too, but yeah, what difference does it make when everything goes up too? All the money goes to the top
It's called minimum wage for a reason lol. It's only there so employers won't face lawsuits, and keep a standard (more like substandard) for morality in society. It's there so people won't get paid less, that's it.
The reason we have a housing shortage is because home owners here keep voting on laws that make it harder to build more homes because they want to keep their prices high. Also Airbnb, and Chinese home investors.
Chinese retail investors are nothing / you see them at open houses and think it’s their fault. The real cash influx are those who don’t show their faces / the buy en bloc, off market, and clandestine / the institutional Wall Street investors who are now buying real estate as an asset class - like gold - and are not buying them to live in but to make money or hold for long term investing. Stop with the Chinese investor blamed / why aren’t you blaming the american sellers who are selling to the highest bidder and getting rich?
@@joannabusinessaccount7293 Oh yes, American investors are part of the problem too. I agree with you. It's all the above.
@@whereaboutsunknown3822 Thanks for recognizing that. I'm just frustrated at people pointing at the Chinese for causing the problems everywhere in the world. In America, the American rich people love doing business with the Chinese. American sellers get rich from selling their house to the highest bidder. American investors get rich from driving the asset market up because there are Chinese buyers. America's everyday Joe's pension fund holders get rich from seeing their 401K up, because American companies are doing well doing business with cheap labor in China thereby increasing the profit merging. America's families can buy things from Target and Walmart more cheaply because they are made in China. In every area of the economy, America has benefited from the Chinese rise. Let me ask the critics: Did China come to America and point a gun at America and say, "I force you to do business with me?" No. Yet, some Americans are blaming China for everything: Covid, Housing, Job loss, Brain drain, the environment, global warming, etc. Politicians like Trump have personally benefitted from doing business from China (Ivanka Trump's shoes, Donald Trump's buildings, Jared Kushner's Manhattan real estates) have all benefited from China. But to win the voter's favors, especially those poorer voter's favors, American politicians have led the battle cry that "It's all China's fault." Were China to completely withdraw its business dealings and investments in America - that's when America will REALLY Collapse. The sooner America can start recognizing the inevitable that China is going to be the next equal super power, the more the two countries can cooperate - that would be the smarter approach.
@@joannabusinessaccount7293 Calm down. I should have used the word "foreign investors". I don't mean to solely attack China. I just said Chinese because I think they are the most prevalent foreign investor investing in American real estate. But yeah there are others too. And you're right, it has to do with American policies that allow foreign investors in the first place. So anyway, I'm not trying to say China is the problem.
Well, if you're going to speak of China, I will say that I have nothing against Chinese people. But the Chinese Government royally sucks ass.
Chinese money stopped coming in a few years ago already. It is the invested like Zillow, Redfin and wall street.
That’s why I moved to San Diego in 2009.
You guys need to get more housing and bring an end to all the NIMBY regulations. The Bay Area is super cool, but I couldn’t move out there for less than 250k a year now.
That's not true bro there are plenty of apartments you can rent for under 2k. You could get a studio almost anywhere in the city for like $1400.
0:56 I agree. I used to love the state in which I was born & raised, but the rent, the Bill's, can't find a decent job, and the traffic is a _gargantuan clusterfuck, 24/7!_
Heads up, everyone: there are _entire_ housing developments sitting in San Ramon. _EMPTY._
Those in power, with _all_ the money.. have figured out how to gentrify an entire region.
Well I live in SR, and I can tell you, there isn't a single empty house here!! They sell withing hours out here... but nice try!
Chronic housing shortage
Chronic robbery problem
Chronic gang problem
Chronic homelessness problem
Chronic corrupt government problem
I cant wait to visit San Jose in June, my husband got a work thing there and I'm tagging along.
Pretty ballsy to say on live TV that you're moving from Cali to Idaho. Just going to go screw up a different economy by inflating the housing market with your $50K over asking price CASH offers...
I have rejected a few jobs due to the salary in this area. If you are paying $3K monthly on rent, you need to have no other expenses
"...Why are you moving? Because it SUCKS Here!" That says it all. So glad I don't live in California anymore.
I wonder how many houses are actually occupied? I've heard many are vacant.
You pay At least a million dollar for a house and get shootings, burglaries, break ins as complimentary
I never see any of that in the Bay Area where I live.
Yeh that stuff totally doesn’t exist anywhere else. Smh
you know I guess I probably shouldn’t even say anything because I’ve never been to California but if I’m not living right by the water......the videos,pictures, articles like this I’ve seen it mostly looks like any other city in America (yes I know y’all have wine country and the movies that’s not what I’m talking about I’m talking about densely populated cities in California to me it looks like any municipality right here in Atlanta)I don’t see what’s the big hoopla unless you are working for tech Giants but still there needs to be some regulation I will never live in California or New York I laugh at the prices......in Georgia I live very close to falcon Stadium yes the houses are high because it’s Midtown but I would say 40 miles outside of Atlanta you can get a 6 to 7 bedroom for less than 600,000 easy and possibly even a three car garage and adequate land front and backyard
my heart also goes out to them... esp the descendants of Bay area families who moved there from Great Migration days of the 20th century, leaving the deep south... Perhaps... working a couple full time jobs, and living tight (like college dorm, military barrack-style) for a couple years works? A 2 bath unit to just sleep cook and clean for 5 people out working all the time, is only $10k yearly per person. Suddenly seems very affordable. Then just have to network, get skills using OJT programs to double wages, and sign up for the poverty programs to cut food, housing, and bus pass costs. Just looking for solutions...
well. I have to find a 3rd job now :\
Renting, in general, is dangerous. If prices go up, like they are now, you have no control over that. In some places, there are limits to how much rent can increase, but in many, there are not. I'd much rather have a house. Sure, you've got to fix everything yourself, but you learn. I do all of the plumbing and electrical on my house myself. There's no better feeling than knowing that no matter how much rents go up and down, your costs are fixed. And when you pay off the mortgage? You're done!
You’re forgetting that people aren’t actually trying to RENT they only rent because that’s all they can afford or there’s no availability for homes
Move to Bakersfield Ca Problem solved
As a plumber who makes about 45 an hour and that’s just frickin crazy and I live in New Jersey. It ain’t cheap here at all. But damn y’all are crazy out there.
Funny when the minimum wage is just over $16 per hour
Can someone explain???? If we are suffering from a housing shortage.... which is claimed to be chronic and ongoing.... then WHERE are the people who allegedly need this housing currently living?
I live in a wooden shed in the backyard lol
Foreigners, especially China money flooded into the bay. They bid higher and paid in cash to buy not only one house, but DOZENS.
Of course with growing number of transactions, realtors and investors were happy while they did not think about what will happen down the road to locals.
@@friendforlife3321 Nope it will never happen. If you were in their shoes, you would be partying everyday with commissions earned.
MadeforMore that sounds racist. whats next, close the borders so mexicans cant bid on apartment rooms and lower prices? nah man we need to let in 10 million migrants per year. from all over the world. think of all the yummy ethnic food theyll bring!
@@min-k2689 exactly. If you are the selling, you would sell to the highest bidder right? Doesn’t matter if they are chinese or whoever.
I hope that the screwed up people that are leaving dont ruin the rest of the country their moving too!!
Don’t worry, they already are. Just look at Texas. Us Californians are like the plague, if we are being honest.
I'm wondering does anyone know about how much those houses shown cost. I moved from Ohio to Western Illinois last summer to a very comparable house that's pictured in the video because of the tax friendliness of Illinois. Yes you heard that right tax friendliness of Illinois they don't tax any types of retirement income in Illinois. I had always heard that housing was high in California and was just wondering. And I will admit I only looked at the Midwest states but I did look at the things I have and things I purchased to determine the true cost. I was surprised to see all the hidden taxes that states have. If your wondering I payed 60,000 for the house but it is completely updated.
those houses look like they are in the Willow Glen or near down town area of San Jose and would be over $1M.
I left Diego in 2015 and don’t even go to Cali for fun.
We couldn't afford to live in SanJose and we lived there for 15 years, we left in 1989. This is not new.
You know things "suck" when you have to move to OH.
that was cold..😂
"you gotta pay 1500 a month to get a single bedroom and roomates, who wants to deal with those things" thats me, international student lol
Ahhh, the Bay Area, where you can be a Admin at a tech company and make more than a teacher, police officer, nurse, and a physician....
Lol I’m not sure which “admins” you’re talking about. I know several who work for the largest tech companies in the Bay Area, and they make less than half of the wages required to afford housing. Unless you have an engineering degree or similar, big tech doesn’t pay what you think it does.
@@stephanieyanez6854 Not everyone in tech makes $150K a year and those that do are likely working 60+ hours a week.
Wrong, I know three personally that make 150K. I won't say which company but it's a big one.
@@davonmonroe188 It depends on what you mean by admin. If you are talking CCIE then it is believable. A run of the mill admin at Google won't be making $150K a year.
@@hoapres I'm sure you can see where I am going with this.