Thursday, June 20, 2019

The Future of the Bay Area for Moderate Income Families

San Jose officials say that without intervention, moderate-income families may be priced out of renting or buying in the area altogether. The news will come as no surprise to locals who are likely all too familiar with the challenges of the Silicon Valley real estate market. Cal Bay Property Management's Scott Safadi has watched the evolution of San Jose's housing crisis. While government intervention could help save the shrinking middle class, landlords and property owners may feel frustrated by the slow pace that city council operates at. 

To understand the challenges these families face, it helps to define moderate income. It's a subsection of the middle-class making between 81 and 120 percent of the area's median income. For San Jose, that's $135,250 for a family of three. Not the group typically associated with government handouts, these people often struggle to qualify for low-income housing. With no option but to pay expensive rent or mortgage costs each month, many opt to move in with roommates to help ease the financial burden.

While roommates are one option, it's important for moderate-income families to have a space of their own. Landlords and multi-family property owners in Silicon Valley may be eager to find quality tenants, but taxes, maintenance costs, and other factors drive up the average rental prices. This makes it difficult to turn a profit, especially as the area's cost of living continues to climb. 

Whatever the San Jose city council has in store, area property owners and landlords will have their eye on the moderate-income group. 

- Scott Safadi, Cal Bay Property Management


Post a Comment


twitter Delicious facebook Digg Stumbleupon Favorites More