As federal stimulus checks land in bank accounts in coming days, a sobering reality may hit many Bay Area residents — the money will cover less of their housing costs than anywhere else in the country.
More than 9 in 10 Bay Area homeowners would have less than half their monthly mortgage and utilities paid by a $1,200 coronavirus-related stimulus check, the smallest relief for any region in the country, according to a new analysis by Redfin. Even most two-income families receiving $2,400 in aid would come up well short of paying Bay Area mortgages and utilities.
Bay Area renters, too, will see relatively less relief than anywhere else in the country. Just 1 in 5 renters in San Jose and 1 in 3 in San Francisco and the East Bay would see the majority of their housing costs paid with a $1,200 check.
"That's not going to help too much," said Redfin senior economist Schery Bokhari.
Bay Area housing costs remain among the highest in the nation. The median sale price for a single family home in seven Bay Area counties in February was $888,100, according to Zillow. Despite a falling stock market and shelter-in-place restrictions, demand has kept prices high, Bay Area real estate professionals say.
"Inventory is extremely low," said San Mateo County agent Wilson Leung. "People are still motivated to buy."
The median rent in April for a two-bedroom apartment was $2,990 in Oakland, $3,030 in San Jose, and $4,540 in San Francisco, according to rental listing site Zumper.
The federal stimulus checks are part of $2.2 trillion aid package passed by Congress in March. Individuals receive up to $1,200 and couples get up to $2,400, plus $500 per child. But the stimulus phases out at higher incomes, beginning at $75,000 of adjusted gross income for individuals and $150,000 for couples.
The Bay Area's median annual household income is about $96,000, and many residents in high-income communities will not receive full stimulus checks.
But other factors could ease the pain for residents struggling to meet mortgages and rents. Out-of-work Californians have received an extra, $600 weekly supplement to unemployment payments, helping bridge gaps in lost income.
High Bay Area rents often mean more than two tenants, bringing multiple incomes and relief checks, to help with housing costs.
Nationally, a single stimulus check is expected to cover most or all of housing expenses for 3 in 4 renters, according to the Redfin analysis of census data. Just about half of all U.S. homeowners would have most of their mortgages covered by the federal checks.
But things look much worse in the San Jose and San Francisco metros, which ranked 50th and 49th, respectively, among the 50 largest metropolitan regions studied. The median monthly mortgage payment in San Francisco and the East Bay was $3,100, while the median in the San Jose metro was $3,370.
The coronavirus pandemic has not eased the tension between supply and demand in the housing market so far, according to Redfin research. Both buyers and sellers are pulling back in equal measure, leaving prices relatively stable, Bokhari said.
Bokhari cautioned that a lengthy downturn and higher unemployment could push home prices down. Consumers are less willing to make big purchases when their incomes fall or employment seems uncertain.
