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Santa Maria, SLO ranked in top 10 most unaffordable home markets

May 6, 2025

By KAREN VELIE

While home ownership is a key part of the American dream, there is a dramatic gap between what the middle class can afford and actual home prices, according to GOBankingRates. The top 10 most unaffordable cities in the United States include nine in California, with two located on the Central Coast.

To determine how much house a middle-class household can afford, GOBankingRates sourced Zillow Affordability Research Data. The affordable home value is defined as an estimate of the price such that the total monthly payment on the property does not exceed 30% of the median household’s monthly income.

Santa Maria is ranked the fifth most unaffordable housing market, according to a report by GOBankingRates researchers. The average home price is $974,486, pricing most residents out of the home ownership market. The difference between average home value and “affordable” home values is $590,295

San Luis Obispo is ranked the seventh most unaffordable housing market. The average home price is $893,427. The difference between average home value and “affordable” home values is $506,395.

San Jose leads as most unaffordable city with an average home price of $1,671,369, with an affordability difference of $1,001,744. The remaining nine metros are Santa Cruz, Kahului, San Francisco, Santa Maria, Los Angeles, San Luis Obispo, San Diego, Salinas and Napa.

 


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Buy an out of state property. Find a deal where rent covers mortgage plus. They are abundant. Just takes research. Why buy a family home here at outrageous prices when you can rent and have tenants at income property pay double mortgage payments somewhere affordable. Paid off in 7 years. Then decide if you want to stay in California.


1

I have a sincere question. Why would anyone want to live in Salinas?


17

Almost everything for sale currently in Santa Maria is way below $975K . Not sure where this data came from or if the article has a mis print . SLO is a different story, and demand is more than keeping up with supply


18

It definitely is a typo as the average price in SM is $600,000.


19

Thanks for clearing that up. No way Santa Maria is more expensive than Santa Barbara and I would strongly doubt that Salinas is more than SB either.


In other words, this appears to be shoddy research by GOBankingRates, whoever they are. A list to be ignored by anyone concerned with the facts.


17

I demand a single family home for less than 250k… There is no supply. Soooooo…. Even 600k is still completely unattainable for the vast majority of people earning 50k a year. Where are the service wrokers supposed to live? Want us to get shuttled in from 100 miles out? Spend hundreds on gas just to get to the job? Not realistic at all. Sad that its happened here :/


7

As long as the NIMBY’s keep getting their way and refuse new homes being built, they will keep prices high. We tried to expand rent control but the most affected demographic of high prices didn’t vote. Your loss, kids. Better luck next time.


-37

Rent control. Socialist BS. You’re still here. Seems like you figured it out. Next generation will too. I have faith in people forging their path forward. It takes hard work and discipline. Ass, grass, or gas. Nobody rides for free.


5

I’m sure you only drive on toll roads, no socialist roadways. If you have a house fire, call around and get the best price for fire suppression services, not that socialist fire house a few blocks away. Same goes for the private police force to keep you safe, not that socialist program in your city. Are you collecting rainwater or using a well? I’m sure you’re not using that socialist water treatment program your community subscribes to.


You’ve figured it out, no one rides for free. Get cracking on those phone calls. Make sure you don’t use the socialist power grid.


2

Roads, Police, fire departments, power grid, water supplies, are established by being voted for by, and paid for in agreement with, taxpayers.


Which is exactly opposite of your socialism claim.


2