To those completely priced out of the San Francisco housing market – and there are many – it may seem like a question of semantics to ask if the city faces an affordability crisis or is in housing bubble. After all, median prices are now at $1 million but according to a recent forum sponsored by SPUR (formerly the San Francisco Planning and Urban Research Association) San Francisco does face an affordability crisis but is not in a housing bubble.
Interested in the distinction? San Francisco is the least affordable housing market in the country with just 14 percent of houses for sale affordable to middle-class buyers. Compare, for example, Oakland at 40 percent and San Jose at 34 percent.
A Housing bubble occurs when prices are high relative to what is considered normal for the area and here experts said homes are currently overvalued by 6 percent.
Still, no matter how you look at it: Affordability Crisis or Housing Bubble – a median price of $1 million is a lot of money.