In San Jose, where the average home price is about $1.37 million, a worker earning the city\u2019s average salary of $86,605 could afford about 27.3% of a typical home, according to the study. For two average earners making a combined $173,210, it would only buy them about 54.6% of a property.<\/p>\n The findings come as San Jose leaders continue to debate how to address a\u00a0housing crisis<\/a>\u00a0that has increasingly priced out not only low-income residents, but also middle-class workers who keep the city running.<\/p>\n During the Jan. 27 City Council meeting, several residents spoke during public comment on a proposal to expand the city\u2019s downtown residential incentive program to encourage the\u00a0conversion of vacant commercial buildings into housing<\/a>. The expansion, approved in a unanimous vote, will waive or reduce certain development taxes and fees and allow eligible conversion projects to include no deed-restricted affordable homes, a tradeoff city officials said is necessary to make conversions financially feasible.<\/p>\n Building more won\u2019t solve affordability<\/p>\n Several speakers said the proposal, while increasing housing supply, will do little to address affordability if new homes are\u00a0priced beyond the reach of most residents<\/a>.<\/p>\n \u201cThe city needs to ensure that affordable housing is included,\u201d Katherine Hedges, one of several residents who urged the council to prioritize affordability alongside new development, said at the meeting.<\/p>\n Others warned that rising housing costs are already affecting the city\u2019s ability to deliver basic services. John Tucker, a city employee, urged councilmembers to pause the proposal, citing low employee satisfaction, staffing shortages and a hiring freeze that has left departments stretched thin.<\/p>\n \u201cWe understand the goal of encouraging downtown housing and conversions, but incentives should come with clear public benefit and guardrails, especially when city services are slipping and budgets are tight,\u201d Tucker said at the meeting.<\/p>\n Residents also questioned whether housing labeled as \u201caffordable\u201d \u2014 typically aimed at households earning up to 80% of the area median income which in Santa Clara County is $111,700 for an individual and $159,550 for a family of four \u2014 actually meets the needs of San Jose\u2019s lowest-income residents.<\/p>\n \u201cIf you allow the market to dictate, rents get extreme. Once rent is set at $6,000, no one\u2019s going to lower it.\u201d<\/p>\n Regina Celestin Williams, SV@Home<\/p>\n Housing advocates said the city\u2019s current approach has contributed to widening economic and racial disparities.<\/p>\n Regina Celestin Williams, executive director of SV@Home, said San Jose has been intentional about building housing in recent years, but much of it has been geared toward residents who can afford high rents or buy a home.<\/p>\n Williams said while the city has\u00a0invested in shelter and services for people experiencing homelessness<\/a>, it has largely failed to address the needs of middle-class residents, particularly families.<\/p>\n \u201cTraditionally when you think of middle class, you think of a family,\u201d she told San Jos\u00e9 Spotlight.<\/p>\n She added that families are being displaced along with communities of color, especially Black and Indigenous residents.<\/p>\n \u201cIf you allow the market to dictate, rents get extreme,\u201d Williams said. \u201cOnce rent is set at $6,000, no one\u2019s going to lower it.\u201d<\/p>\n What you need to afford the average rent<\/p>\n Data shows<\/a>\u00a0the income needed to afford the average asking rent in Santa Clara County is about $10,767 a month, or roughly $62 an hour.<\/p>\n San Jose\u2019s\u00a0minimum wage<\/a>\u00a0is $16.90 an hour, or about $70,000 a year for a full-time worker \u2014 far below what is needed to afford a median-priced home in the city.<\/p>\n Real estate experts have previously estimated that households may need incomes approaching $300,000 to qualify for a\u00a0mortgage in San Jose<\/a>, a figure that has risen sharply in recent years as prices and interest rates have increased.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/02\/1770510428_444_LNM-20250616-SJSPOTLIGHTLOGO-01.jpg\")
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