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Solano County Is the Most Affordable Housing Market in the Bay Area

The San Francisco Bay Area is a notoriously expensive real estate market. But some cities in the region are much more affordable than others, when it comes to average home prices.

For example, Solano County is home to the most affordable housing markets in the Bay Area. Cities located within Solano County have a lower average home price, when compared to every other county in the region.

If you’re planning to buy a home in this region, and you have some degree of flexibility as to the location, you might want to consider Solano County. It is by far the most affordable housing market within the broader San Francisco bay Area.

Meet the Most Affordable Housing Market in the Bay Area

A recent report published by the California Association of Realtors (CAR) revealed something that we already knew. Solano County is the most affordable real estate market within the broader Bay Area.

Published in August 2021, this report showed that Solano County had the lowest average monthly mortgage payment among homeowners. Their analysis considered median home prices, a 30-year fixed mortgage loan, and a down payment of 20%. Based on those parameters, home buyers within Solano County enjoy the lowest monthly mortgage payments, on average.

  • The average monthly payment in Solano County was found to be around $2,630.
  • Across the Bay Area as a whole, the average monthly payment was just north of $6,000.

According to the CAR report, 40% of households in Solano County could afford a median-priced home. That’s a much higher affordability index than most other parts of the San Francisco Bay Area.

Geography notes: Solano County is home to around 413,000 people, as of the last census count. It is located in the northeastern part of the Bay Area region and is also part of the Vallejo-Fairfield metropolitan statistical area (MSA). Major cities by population within Solano County include Vallejo, Vacaville, Fairfield (the county seat), Suisun City, and Dixon.

Home Prices Are Lower in Solano County, on Average

The CAR report also showed that the median home price in Solano County was around $570,000 as of July 2021. That was the lowest median home price of any county located within the San Francisco Bay Area, and by a wide margin.

During that same month, the median home price for the Bay Area region as a whole was just north of $1.3 million. That’s more than double the median price point within Solano County.

This provides further evidence that it’s the most affordable housing market within the broader Bay Area region. Something to consider, if you’re planning a relocation or home purchase!

Even This Market Is Getting More Expensive

The data and reports cited above clearly show that Solano County is the most affordable real estate market in the Bay Area. At least at the county level. Home prices there are typically much lower than they are in places like San Francisco and Marin County.

As a result, most homeowners in Solano County enjoy lower monthly mortgage payments when compared to other parts of the Bay Area.

However, like most real estate markets in the region, home prices in Solano County continue to climb in 2021. And recent forecasts suggest that this trend could continue well into 2022. According to the real estate data company Zillow, the median home value for the county rose by 19.5% over the past year or so. (This was reported in mid August 2021.)

Based on current supply and demand conditions within this real estate market, it seems likely that home prices will continue to rise through 2021 and into 2022. Solano County might be the most affordable housing market in the Bay Area in 2021. But it’s getting more expensive from month-to-month.

Still, this market does offer some of the best deals for home buyers, compared to other cities across the region. But even within the relatively affordable Solano County area, house values continue to rise. And that’s something to keep an eye on, if you’re planning to buy a home in the area.

Need mortgage financing? Bridgepoint Funding is proud to serve home buyers all across the San Francisco Bay Area. We offer a broad range of mortgage products, including conventional, FHA and VA loans. Please contact us if you need a mortgage loan to purchase a home in Solano County, or anywhere else in the metro area.

Mike Trejo

Mike Trejo is a Bay Area mortgage broker with 20+ years of knowledge and experience.

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