A recent compilation of housing data shows that of America’s 27 biggest cities, San Francisco and Los Angeles rank #1 and 2 respectively in the ratio of median housing cost to median income. This is worse than traditionally expensive cities like New York City and Honolulu.
In these two California cities, you need 14.1 and 12.3 times the median income to buy a house. The best ratio is in “rust belt” places like Detroit and Cleveland, with not bad ratios in the sun belt cities of Houston and Dallas.
Sure, Californians get a lot for the high price: access to good jobs, incredible weather, beautiful scenery, fresh fruits and vegetables, and lots to do. But life doesn’t have to be that difficult for people here if the state would allow more housing to be built in infill urban areas to help stabilize prices.
Here’s a handy chart that investmentzen.com put together documenting the ratios: