Silicon Valley, congratulations, you’ve reached a historical house-cost standard — while also hosting among the largest displaced people in the country. Data released Wednesday from the National Association of Realtors reveals the median cost for a house surpassed $1 million in the region around San Jose, California — a first for any metro area in the state.
The San Jose-Santa Clara County urban zone, including rich precincts including Palo Alto and Los Altos, has for ages been the millionaire executives that run them, and an expensive spot to live thanks to the outsize existence of technology companies. As with last year, the San Jose metro area is the highest priced market in the nation, leading a national home retrieval that began four years past.
Nationwide, house prices rose in the second quarter of the year in 83 percent of real estate-heavy markets, in accordance with the report. Home costs at the moment are nearly at the exact same amount as the all time summit reach of July 2006, based on information from CoreLogic. Which ought to raise eyebrows, considering the previous high arrived before the home market crashed sending the country since the Great Depression into the longest period of economic contraction.
While house prices are soaring, the national homeownership rate has dropped to a 51-year-low of 62.9 percent in the second quarter, down from 63.4 percent in the same three-month span last year. So, in short: Houses cost more and fewer and fewer Americans possess them, as countless thousands of would-be homebuyers, including young adults weighed down by debt and workers whose wages appear frozen in time, have instead been locked in into the rental marketplace.
“you’ve these individuals who can’t get home, and it’s turning into this fury,” Kevin Finkel, executive vice president of Philadelphia-based Resource Property, told the Wall Street Journal.
Meanwhile, a Housing and Urban Development report last year estimated that San Jose-Santa Clara County had some 6,500 displaced residents, eighth most in the country. San Jose once sponsored the country’s biggest displaced team, referred to as the “Jungle,” with a population of 300. While the city cleared the 68-acre shantytown in 2014, removing a powerful symbol of income disparity, it now has a fresh one: the million dollar median listing.