Market Intelligence

Silicon Valley Housing Affordability Index

Historical analysis of the income required to purchase the median-priced home in Silicon Valley, updated with live market data.

Analysis by Xavier Williams  |  DRE #01968917  |  Updated monthly

What is the Affordability Index? The affordability index measures the percentage of median household income required to purchase the median-priced home in Silicon Valley at current 30-year fixed mortgage rates — assuming 20% down payment. An index of 50 means 50% of gross income goes toward housing. The conventional affordability threshold is 28–30%.

52.4%

As of 2024, 52.4% of gross household income is required to purchase the median Silicon Valley home — above the 25-year average of 37.2%.

Median price: $1.41M  ·  Household income: $166,984  ·  Rate: 6.72%

Affordability Index 2000–Present

% of Median Household Income Required for Housing
Affordability Index
25-Year Average (37.2%)

Historical Data Table

Year Median Home Price Median Income 30yr Rate Affordability Index Source
2024 ★ $1.41M $166,984 6.72% 52.4% Redfin
2023 $1.30M $154,573 6.81% 52.8% Redfin
2022 $1.31M $150,502 5.34% 46.5% Redfin
2021 $1.21M $141,161 2.96% 34.5% Redfin
2020 $1.04M $139,462 3.11% 30.7% Redfin
2019 $0.97M $132,444 3.94% 33.4% Redfin
2018 $1.04M $125,933 4.54% 40.5% Redfin
2017 $0.88M $118,468 3.99% 33.9% Redfin
2016 $0.78M $110,843 3.65% 31.1% Redfin
2015 $0.73M $102,191 3.85% 32.2% Redfin
2014 $0.66M $97,219 4.17% 31.8% Redfin
2013 $0.60M $91,843 3.98% 30% Redfin
2012 $0.47M $91,195 3.66% 22.7% Redfin
2011 $0.44M $84,741 4.45% 25.1% CAR/DataQuick
2010 $0.43M $84,627 4.69% 25.3% CAR/DataQuick
2009 $0.40M $84,990 5.04% 24.4% CAR/DataQuick
2008 $0.54M $88,525 6.03% 35.2% CAR/DataQuick
2007 $0.67M $84,265 6.34% 47.4% CAR/DataQuick
2006 $0.66M $80,775 6.41% 49.1% CAR/DataQuick
2005 $0.63M $76,686 5.87% 46.6% CAR/DataQuick
2004 $0.53M $68,842 5.84% 43.1% CAR/DataQuick
2003 $0.44M $68,223 5.83% 36% CAR/DataQuick
2002 $0.45M $70,216 6.54% 39% CAR/DataQuick
2001 $0.49M $72,869 6.97% 42.8% CAR/DataQuick
2000 $0.46M $74,705 8.05% 43.1% CAR/DataQuick

Methodology

How the Affordability Index Is Calculated

  • Median Home Price (2012–present): Monthly median sale price for the San Jose metro area from Redfin Market Tracker data, averaged annually. Updated monthly as new Redfin data is released.
  • Median Home Price (2000–2011): Santa Clara County median home prices from California Association of Realtors (CAR) and DataQuick historical records.
  • Median Household Income: Santa Clara County annual median household income from the U.S. Census Bureau Small Area Income and Poverty Estimates (SAIPE), sourced via the Federal Reserve Bank of St. Louis (FRED series: MHICA06085A052NCEN).
  • 30-Year Mortgage Rate: Annual average of weekly Primary Mortgage Market Survey rates from Freddie Mac, sourced via FRED (series: MORTGAGE30US).
  • Index Formula: Assumes 20% down payment. Monthly payment calculated using standard amortization on the remaining 80% loan balance. Index = (Annual Mortgage Payment ÷ Median Household Income) × 100.

The conventional affordability guideline (28–30%) is a commonly used benchmark; actual qualifying ratios vary by lender. This index does not include property taxes, insurance, or HOA fees, which add 15–25% to monthly housing costs in Silicon Valley.

Frequently Asked Questions

What is the Silicon Valley Housing Affordability Index?
The Silicon Valley Housing Affordability Index measures the percentage of median household income required to cover annual mortgage payments on the median-priced home in Silicon Valley, assuming a 20% down payment and a 30-year fixed-rate mortgage at prevailing rates. A score of 50 means a household earning the median income would spend 50% of gross income on their mortgage — well above the recommended 28–30% guideline. This index is updated monthly using live Redfin market data and FRED economic data.
Is Silicon Valley housing affordable in 2026?
As of 2024, Silicon Valley housing requires approximately 52.4% of median household income to cover mortgage payments — above the 25-year average of 37.2%. By conventional standards (28–30% of income on housing), Silicon Valley housing is significantly unaffordable for median-income households. However, Silicon Valley's high concentration of tech-sector workers with compensation packages well above the median income reduces the practical impact for many buyers. RSU income, bonuses, and dual-income households are critical factors in Silicon Valley affordability that this index does not capture.
How does Silicon Valley affordability compare to the 1990s?
Silicon Valley has been structurally unaffordable by national standards for decades, but the degree has worsened significantly since 2012. The post-pandemic era (2020–2024) saw affordability reach historic lows as home prices surged past $1.3M while mortgage rates climbed from record lows near 3% to above 7% by 2023. The best affordability window in recent memory was 2009–2012, during the post-financial-crisis correction, when prices fell 30–40% from their mid-2000s peaks. Today's affordability challenges are driven by three simultaneous forces: peak home prices, elevated mortgage rates, and constrained housing supply driven by local zoning restrictions.

What Does This Mean for Your Situation?

These are market-level statistics. Your actual buying power depends on your income, RSU vesting schedule, and financial profile. Let's build a specific analysis for you.

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