Wages Aren't Keeping Up With Sacramento Home Prices
by Rick Delgado
on Thursday, June 23rd, 2016 at 10:57am.
Looks like home prices in the Sacramento area are pacing ahead of wages earned.
According to RealtyTrac, a real estate information company out of Irivine, Calif., Sacramento's home prices are 9% higher than they were last year at this time, but the growth of the wages and earnings is up 5%.
Home prices Sacramento and the Tri-County region have steadily been on the rise since bottoming out in early 2012, however earnings haven't been able to keep pace with the rapid rise of homes.
RealtyTrac reports the least affordable region in the area is El Dorado County, where an average wage earner living there must spend 67% of their earnings to purchased a home worth $430,000.
The most affordable area to live in the region remains Sacramento County, where the average wage earner would spend 39% of their income on a home worth $310,000 as home prices are down slightly.
Sacramento area real estate agents are noting the home price increase is partially due to retirees from the Bay Area selling their high-priced homes and condos and moving to the far more affordable Sac Town region.
The RealtyTrac data also lists San Joaquin County as being a tough market for the average wage earner as the median home price there has jumped from $145,000 in late 2011 to $2990,000.
In the San Joaquin area, wages have gone up 12% since 2011, meaning if the average earner were buying a home there, it would cost 51% if his or her income.