The high cost of housing in San Jose has placed the city in the top five most “unaffordable” cities globally, according to a report from Chapman University. When comparing San Jose to the most affordable U.S. city, Pittsburgh, the numbers show a stark difference. Pittsburgh is nearly 75% more affordable than San Jose. The report also highlights the most affordable North American cities for housing, with Pittsburgh, Rochester, and St. Louis among the top choices.
One of the key reasons for the unaffordability of cities like San Jose is the high cost of housing. However, a move by San Jose to allow homeowners to sell Accessory Dwelling Units (ADUs) as separate properties has garnered support from those who believe it will provide much-needed housing options in the area. In fact, when looking at other U.S cities that made it to the list of “impossibly unaffordable” cities last year alongside San Jose, Los Angeles and San Francisco were also named as such. While these cities are located on opposite coasts of United States, they share one thing in common; their high cost of living has made them almost impossible for some people to afford.
The increase in remote work during the pandemic led to a surge in demand for housing, especially in suburban and remote areas where people could have more space while working from home. This demand shock resulted in substantial price increases as households sought more space in houses and yards. However with this new policy allowing ADUs to be sold separately, it may provide an alternative and more affordable option for those looking for housing in San Jose area .