Are you dreaming of buying a home? For many, that’s just a dream…especially in our beautiful San Diego. And we’re definitely not just imagining it! A recent global study by Remitly just dropped, and America’s Finest City has officially landed in the 4th spot for the least affordable city to buy property. Yikes.
San Diego, the 4th most unaffordable city
Despite strong local salaries and a booming economy fueled by tech, tourism, and the military, San Diego’s real estate prices have simply skyrocketed. In fact, even dual-income couples earning average wages will struggle to snag a modest house without major family support or a big down payment. The millennial / Gen Z housing problem is real-real in San Diego.
What cities are even more unaffordable?
But hey…it could be worse. California actually swept the podium for the hardest places to buy a home. San Jose took the crown as the least affordable city in the world, followed closely by Los Angeles and Long Beach. Right behind San Diego in 5th place is Vancouver, Canada. Other notoriously pricey spots include Paris, Porto, New York City, Miami, and San Francisco.
Which cities have affordable homes?
On the flip side, if you’re looking for more of a bargain, pack your bags for Detroit, Michigan. Detroit ranked as the single most affordable city globally, where a couple earning average wages can comfortably afford nearly 5x the average home price. The Californian mind cannot comprehend. Dreaming of Europe? Catania, Italy, took 2nd place – while Germany dominated the rest of the top 10 affordability list.
The study
The researchers analyzed 151 cities across 11 popular countries. Instead of just looking at raw listing prices, they crunched the numbers on average local incomes, property prices, standard mortgage rates, and down payments. By calculating exactly what percentage of a home a single earner or a couple could afford based on local data, they figured out where a paycheck stretches the furthest.