Five Percent of San Diegans Can Afford to Buy an Average Home
A leading business publication calls San Diego's real estate market the most overpriced in the country. Forbes.com looked at the 40 largest cities in the United States.
Reporter Matt Woolsey says he evaluated data from realtors, the federal government, and the census bureau. He says only about 5 percent of San Diego's residents can afford to buy the average home. Woolsey says home prices and incomes are out of balance.
Woolsey : If you were to look at a property solely as an investment property, how much money could you derive, in annual rent once you factor out carrying costs, based on what you paid, very much like a stock. And for San Diego it was near the top-end in the sense that you had to pay almost $46 for one dollar of return.
Miami, Sacramento, San Francisco and Washington D.C. round out the top five. Los Angeles and San Jose landed in the second five.
