Indicator HH.1.c Housing purchasing capacity of the median income household
| San Francisco Home Sales by Zip Code, 2008 | |||||
| Zip | Neighborhood | # of Sales | Median Sales Price | High Price | $ per square foot |
| 94102 | Hayes Valley/Tenderloin/North of Market | 166 | $525,000 | $1,100,000 | $703 |
| 94103 | South of Market | 249 | $655,000 | $2,912,000 | $766 |
| 94105 | Financial District/Embarcadero (south)/SoMa | 584 | $839,000 | $6,925,500 | N/A |
| 94107 | Potrero Hill | 517 | $647,500 | $3,120,000 | $658 |
| 94108 | Chinatown | 43 | $563,500 | $2,655,000 | $672 |
| 94109 | Polk/Russian Hill/Nob Hill | 273 | $675,000 | $5,200,000 | $1,182 |
| 94110 | Inner Mission/Bernal Heights | 324 | $725,000 | $2,450,000 | $650 |
| 94111 | Embarcadero, Barbary Coast | 59 | $727,500 | $2,031,500 | N/A |
| 94112 | Ingelside-Excelsior/Crocker-Amazon | 454 | $593,500 | $2,805,300 | $500 |
| 94114 | Castro/Noe Valley | 293 | $1,035,000 | $5,625,000 | $922 |
| 94115 | Pacific Heights/Western Addition/Japantown | 199 | $846,000 | $29,000,000 | $1,040 |
| 94116 | Parkside/Forest Hill | 304 | $762,750 | $1,995,000 | $585 |
| 94117 | Haight-Ashbury/Cole Valley | 180 | $932,000 | $3,350,000 | $874 |
| 94118 | Inner Richmond | 179 | $1,185,000 | $9,500,000 | $761 |
| 94121 | Outer Richmond | 175 | $942,000 | $5,500,000 | $605 |
| 94122 | Sunset | 279 | $808,000 | $2,350,000 | $564 |
| 94123 | Marina/Cop Hollow | 165 | $1,525,000 | $8,100,000 | $1,127 |
| 94124 | Bayview-Hunters Point | 195 | $450,000 | $1,200,000 | $342 |
| 94127 | St. Francis Wood/Miraloma/West Portal | 201 | $1,010,000 | $5,000,000 | $632 |
| 94131 | Twin Peaks/Glen Park | 289 | $863,000 | $5,819,000 | $738 |
| 94132 | Lake Merced | 141 | $617,500 | $1,628,000 | $521 |
| 94133 | North Beach/Chinatown | 93 | $890,000 | $5,500,000 | $1,131 |
| 94134 | Visitacion Valley/Sunnydale | 230 | $525,000 | $4,164,000 | $467 |
Data Source
Map and purchasing capacity neighborhood table data from: Applied Geographic Solutions, Inc. Spring 2007 Update: Current Year Estimates. Methodology available at: http://www.appliedgeographic.com/library.html.
Map and table created by San Francisco Department of Public Health, Environmental Health Section using ArcGIS software.
Home sales table created by SFDPH with data from: 2008 Bay Area Home Sales Chart - Reporting resale single family residences and condos as well as new homes. Accessible at: http://www.dqnews.com/Charts/Annual-Charts/SF-Chronicle-Charts/ZIPSFC08.aspx
Chart from the San Francisco Mayor's Office on Housing. Accessed online on October 30, 2006: http://www.sfgov.org/site/moh_index.asp?id=5812
Map data is presented at the level of the census tract, which was calculated by assigning census block data to census tracts based on spatial location. The map also includes planning neighborhood names, in the vicinity of their corresponding census tracts.
Table data is presented by planning neighborhood. While planning neighborhoods are larger geographic areas than census tracts, census tracts do not always lie completely within a planning neighborhood. SFDPH used ArcGIS software and a 'centroids within' methodology to convert census blocks to geographic mean center points. We then assigned census blocks to planning neighborhoods based on the spatial location of those geographic mean center points and calculated the planning neighborhood totals for the table.
Detailed information regarding census data, geographic units of analysis, their definitions, and their boundaries can be found in the HDMT at the following links:
http://www.thehdmt.org/etc/Geographic_Units_of_Analysis.September_2009.pdf
http://www.thehdmt.org/data_map_methods.php
Explanation and Limitations
The map illustrates housing purchasing capacity based on median household income at the census tract level; the first table provides the data aggregated at the neighborhood level. Purchasing capacity reflects how much can be spent to purchase a home based on the median income of a census tract or neighborhood. Neighborhood level purchasing capacity was calculated by weighting the respective census tract medians based on the number of households in each tract, and then applying the standard median calculation method.
"Purchasing capacity" is calculated using the following assumptions:
- 33% of gross income can be spent to buy a home
- 30 year fixed interest rate mortgage at 5.85%
- Monthly condo association of $350
- Taxes at 1.144%
- Down payment of 10%
The second table sows San Francisco home sales and median sales price by zip code - these data help illustrate the gap between purchasing capacity and home sales in San Francisco. The graph shows trends of San Francisco residents' ability to purchase a home based on their income relative to the average home purchase price in the city. The Mayors' Office in Housing calculates an affordable mortgage as being 33% of annual income as a measure of affordability, 10% down payment, 30 year fixed interest at 5.65% and 1.14% taxes. This calculation may vary from year to year and from neighborhood to neighborhood, thus impacting the average purchasing capacity of individuals to purchase homes.
According to San Francisco's Planning Department, only 7.3% of households in San Francisco currently earn enough to afford the median sale price of housing. Between 1996 and 2000, the average home purchase price doubled, primarily the result of booming dot-com and housing economies in San Francisco and surrounding areas, as well as a shortage affordable housing construction.
The Mayor's Office on Housing notes that despite the availability of lower rate mortgages to first-time home buyers, the high cost of housing in San Francisco makes home ownership beyond the reach of most San Franciscans. Additionally, condo fee increases or other fees associated with maintenance and upkeep of the building can increase from year to year, thereby increasing the total financial burden to the individual.
Why is this a Community Health Indicator?
Homeownership positively impacts the social cohesion and civic participation of a neighborhood, which in turn can impact health. Homeowners are more likely to feel invested in their community. They are more likely to participate in nonprofessional associations and vote in local elections. Additionally, a higher rate of homeownership in a neighborhood has been associated with fewer years of life lost due to cardiovascular disease for residents.a
Franzini L, Spears W. Contributions of social context to inequalities in years of life lost to heart disease in Texas, USA. Soc Sci Med. 2003;57(10):1847-1861.