Homeowners In San Francisco And San Jose Rate Their Cities Last In Housing Satisfaction Survey

San Francisco and San Jose might be the biggest cities in Northern California, but both rated last and second to last in a recent study of how "happy" homeowners were with their homes and neighborhoods relative to how much homes cost. This study comes against a backdrop of rising prices and a general lack of affordability that is seeing the area losing population for the first time in years. Benzinga looks at why they're unhappy.

A Victim Of Its Own Success

The housing satisfaction study was conducted by All Star Home, and the intent was to get a fix on where Americans felt like they were getting the most, or the least, for their housing dollars. In San Francisco and San Jose, residents overwhelmingly felt like they were paying too much for what they were getting. The level of dissatisfaction residents voiced in the survey is a departure from the "old” normal.

For decades, Bay Area cities like San Francisco and San Jose were famous for their high quality of life. They offered a highly desirable combination of scenic beauty, employment, great schools and mild weather. Those factors attracted buyers for decades and made the entire Bay Area one of the most sought-after real estate markets in the country. When the tech industry took root in Silicon Valley, it looked like the sky was the limit.

Property values surged as companies like Meta Platforms Inc. and Alphabet Inc. lavished huge salaries, stock options and bonuses on those fortunate enough to work there. Ironically, it was this surge in international visibility and property values that began to drive resident dissatisfaction. Formerly middle-class enclaves in the San Francisco and San Jose metro areas saw prices rise until the average home price surpassed $1 million in both cities.

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Cost Of Living Is Motivating Moves

The All Star Home study showed that 1 in 6 Americans gave cost of living as a reason for moving from one state to another. With that in mind, it's not hard to understand why San Francisco and San Jose rated so low. Everything is expensive there, not just housing. Gasoline, food, education and state taxes all cost more in California than they do in other parts of the country, and that's part of why so many people are leaving.

Where People Are Moving To Get The Most Bang For Their Buck

For much of the pandemic, America's Sun Belt was the big winner in terms of population gain and real estate market growth. Cities like Houston, Phoenix and Atlanta became the new "it" destinations for residents weary of high prices for small houses in the Bay Area (and New York and Los Angeles). Now, the Northeast and Midwest are returning to prominence, mainly because of their affordability.

The All Star Home survey rated Detroit and Rochester, New York, as Nos. 1 and 2 on the list, respectively, in terms of residents feeling like they get what they pay for when they buy a home. At the same time, Zillow's list of the top 10 housing markets of 2024 ranks Buffalo, New York, at the top with Cincinnati and Indianapolis also making the top 10. Americans are voting with their wallets, and the Bay Area is suddenly yesterday's news.

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