| Two and a half times income plus 10% down for a median (middle) family in San Francisco means they can afford a $165k home. In San Francisco. In other words, the $200k family will end up with an asset that at least might appreciate, won't pay any rent, and will realize a major mortgate interest deduction, subsidized in part by the $60k family.
The $200k family, like the $1m family, owns a house, likely some stock, has a pension plan, health insurance, and a car that works (most likely). The $40k family more than likely has none of the above. And, over time, the differences between them will grow. |