The monthly mortgage payment on a typical home in the Bay Area jumped more than 50% from a year ago, soaring to over $9,000 in San Jose and above $8,000 in San Francisco, according to a report from Zillow.
The online real estate marketplace reported Tuesday that housing affordability across the nation is at a 15-year low, adding that buying a typical U.S. home at the current average mortgage rate of 5.78% would mean monthly payments of $2,127, 51% higher than a year ago.
As is customary, that number quadruples in the Bay Area's two largest cities. Here are some details from Zillow's report:
Housing in San Jose metro
- The typical home value is $1,706,565, up 22.4% year over year and 37.6% since 2019.
- Mortgage payments on a typical home are $9,136 a month. That’s up 57.1% compared to May 2021 and 5.4% over April.
- Typical rents are $3,295, up 12.1% since May 2021.
- The share of listings with a price cut is 8.1%, compared to 4.7% in April
Housing in San Francisco metro
- The typical home value is $1,500,189, up 18.5% year over year and 33.6% since 2019.
- Mortgage payments on a typical home are $8,117 a month. That’s up 52.8% compared to May 2021 and 5.4% over April.
- Typical rents are $3,214, up 10.3% since May 2021.
- The share of listings with a price cut is 8.3%, compared to 5.8% in April
Zillow added that mortgage payments now are higher than rent in 45 of the 50 largest U.S. metros, a sharp reversal from as recently as 2019.
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Also, demand for homes has pulled back in response to the latest market shift, easing price growth, slowing sales, boosting inventory and raising the share of listings with a price cut, Zillow reported.
