With the price of a “starter home” in the East Bay at a cool $547,000 (in the South Bay it’s $736,000!) millennials – those between 22 and 38 – who want to buy are spending less in traditional ways: cutting back on entertainment and dining out, working extra, and postponing vacations. But some millennials are taking saving a step further by contributing less to retirement savings, delaying doctor visits, and even reducing or canceling health insurance completely.
How difficult is it to purchase a home these days in the Bay Area? In 1960, the average Bay Area family paid twice their annual family income for a home. These days, it’s NINE times their annual income.