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Daily Mail
25-07-2025
- Business
- Daily Mail
American city named the fourth most 'impossibly unaffordable' in the world
In the heart of wealthy California, a city has been ranked the fourth most 'impossibly unaffordable' place on Earth - surpassed only by three major global metros. San Jose, a major city nestled among the rolling hills of Silicon Valley, was revealed as the most expensive large city in America - with a staggering $370,000 annual household income needed to live comfortably, according to this year's Silicon Valley Pain Index report. Its extreme cost of living isn't just astounding by US standards - it ranked as the fourth-most 'impossibly unaffordable' city on the planet, trailing only behind global heavyweights like Hong Kong, Sydney and Vancouver. According to the latest data from the Social Security Administration, the average salary in the U.S. is $66,622 - nearly 82 percent lower than the $370,000 annual income needed to live in San Jose. Even more shocking, the annual income needed to live comfortably has skyrocketed - rising by 54 percent in just a mere six years. The shock factor doesn't ease up for renters either - the income needed just to afford rent aligns almost exactly with what personal finance experts recommend you spend on a total housing budget. In 2024 alone, the median home price in Silicon Valley soared to an eye-watering $1.92 million. The shock factor doesn't ease up for renters either - the income needed just to afford rent aligns almost exactly with what personal finance experts recommend you spend on a total housing budget To afford even a temporary rental while staying within the recommended 30 percent income guideline, a renter would need to earn an eye-watering $136,532 a year. Nearly half of Silicon Valley's renters and homeowners are struggling, spending over 30 percent of their income just to keep a roof over their heads. The report - published by researchers at San Jose State University's Human Rights Institute - also revealed that Silicon Valley's wealth gap is growing twice as fast as the rest of the nation. Alarmingly, just nine households - making up a tiny 0.01 percent of the population - control 15 percent Silicon Valley's total wealth, according to data from the Silicon Valley Index. But 0.1 percent of Silicon Valley residents hold a staggering 71 percent of the region's wealth. Worryingly, 201,000 households in the region have less than $5,000 in savings or assets - barely enough to cover a major emergency. Experts pointed to soaring housing costs as a key reason San Jose was rapidly aging - meaning younger people and families moved away because living there had become too expensive, while older residents tended to stay put. To meet the state's housing goals, San Jose would have to build a staggering 7,775 homes every year until 2031 - more than four times the city's current annual record of 1,710. Nearly half of Silicon Valley's renters and homeowners are struggling, spending over 30 percent of their income just to keep a roof over their heads Experts pointed to soaring housing costs as a key reason San Jose was rapidly aging - meaning younger people and families moved away because living there had become too expensive, while older residents tended to stay put Beyond the sky-high prices, researchers labeled the region as America's '#1 in societal pain' - a term describing personal and community struggles that deeply harmed resident's quality of life But it's not just about money - it's about how these challenges impact everyday life and the overall health of the community. Beyond the sky-high prices, researchers labeled the region as America's '#1 in societal pain' - a term describing personal and community struggles that deeply harmed resident's quality of life. Some of the root causes of this distress included pay inequality affecting both women and people of color, widespread layoffs in the tech sector, a growing homeless population and rising rates of sexually transmitted infections and infant mortality, according to the report. In 2024, Silicon Valley experienced its highest infant mortality rate in five years. Black and African American babies in the region are over four times more likely to die before their first birthday than White babies (8.3 vs. 2.0 per 1,000 births). However, the report also highlighted some positive changes in the region, including a decrease in use-of-force incidents by the San Jose Police Department while on duty. Other positive developments include expanded services for homeless and housing-insecure residents, as well as new pilot programs launched by local officials to address challenges like homelessness among college students.
San Francisco Chronicle
23-07-2025
- Business
- San Francisco Chronicle
This Bay Area city is the fourth-most ‘impossibly unaffordable' place on Earth
How much do you need to make to afford a house in the wealthiest part of Silicon Valley? For the median-priced home in San Jose, you'd need an annual household income of $370,000 — one of many eyebrow-raising findings in this year's 'Silicon Valley Pain Index,' an aggregate report of economic data about Santa Clara and San Mateo counties published by researchers at San Jose State University's Human Rights Institute. That $370,000 figure is up 54% from what it was just six years ago, the first year the 'Pain Index' was put together. If you're looking to rent, it's also steep: The average San Jose renter needs to bring in $136,532 to keep their payments at 30% of their income, which is the amount most personal finance experts recommend you budget for housing. The report says San Jose is the most expensive large city in America, and notes that researchers from Chapman University and the Frontier Centre for Public Policy in Canada named it the fourth-most 'impossibly unaffordable' city on Earth, surpassed only by Hong Kong, Sydney and Vancouver. The wealth divide has grown twice as fast in Silicon Valley compared to the rest of the country, the report says. Just nine households in the region — .01% of residents — hold 15% of all wealth, according to a part of the report citing data from the annual Silicon Valley Index. (Those nine are Mark Zuckerberg, Laurene Powell Jobs, Larry Page, Sergey Brin, Jensen Huang, Eric Schmidt, Jan Koum, George Roberts and Robert Pera.) Housing costs contribute in large part to why the Bay Area is aging so fast, experts say. Beyond the sky-high cost of living here, researchers write that the region is '#1 in societal pain.' It defines that pain as 'representative of both personal and community distress or suffering, resulting in negative impacts on a person's quality of life.' Some sources of that distress: pay inequality for women and people of color; high numbers of layoffs in the tech sector; increasing numbers of homeless people; and rising rates of sexually transmitted infections and infant mortality. The report does point out some ways in which the region is improving. The San Jose Police Department reports fewer use-of-force incidents. Services for homeless and housing-insecure people have been expanded. And local officials have launched some pilot programs to address problems like homeless college students and nutritional gaps for CalFresh recipients. 'We know, now more than ever, that it will take cross-sector collaboration to make gradual changes in alleviating the pain in our region,' the report reads. It's 81% more expensive to live in San Jose compared to the national average. Average monthly household expenses in San Jose are $3,504. 40% of renters and homeowners in Silicon Valley are considered cost-burdened by their housing, meaning they spend more than 30% of their income on their rent or mortgage payment. 201,000 households in the region have less than $5,000 in assets. 1.8 million people in Santa Clara County face health risks due to poor air quality. The median home price in Silicon Valley reached $1.92 million in 2024. The cost to rent a two-bedroom apartment in Santa Clara County has increased 90% over the past 10 years. San Jose would need to build 7,775 homes every year between now and 2031 to meet the state's housing goals. The most homes that have ever been built in San Jose in a single year is 1,710.
