Homeownership affordability declines in Bay Area and nationally

A new study by the Julian Bond Institute, a research institute of the Center for Responsible Lending, reveals that the time required for renters to save for a down payment and closing costs has significantly increased since 2019.

In the San Francisco metropolitan area, the estimated time needed to save has nearly doubled to 28 years. In San Jose, the estimate is 43 years, while in Palo Alto, renters may need nearly 50 years to afford a starter home. Nationally, a household earning the median annual income for renters—approximately $58,000—would require 16 years to save for a down payment and closing costs, which is twice the duration recorded in 2019.

The report highlights a widening gap for Black households, who would need an estimated 21 years to save, an increase of 10 years since 2019. Researchers attribute these trends to housing prices rising faster than household incomes, creating a steeper climb for families unable to rely on financial assistance from relatives.