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Image 1 of / 37 Caption Close Image 2 of 37 Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Image 3 of 37 Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Image 4 of 37 Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Image 5 of 37 Image 6 of 37 Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Image 7 of 37 Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Image 8 of 37 Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Image 9 of 37 Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Image 10 of 37 Image 11 of 37 Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Analysis is of quarter 4 market action in San Francisco. Data via Paragon Real Estate. Image 12 of 37 776 Wisconsin St. is pending, with a list price of $3,795,000. It's a 3 bed, 3.5 bath. It sold for $1,500,000 in june of 2014. Photos: RMLS 776 Wisconsin St. is pending, with a list price of $3,795,000. It's a 3 bed, 3.5 bath. It sold for $1,500,000 in june of 2014. Photos: RMLS Image 13 of 37 No denying the home is striking. Photos: RMLS No denying the home is striking. Photos: RMLS Image 14 of 37 Loft like open floorplan. Photos: RMLS Loft like open floorplan. Photos: RMLS Image 15 of 37 Image 16 of 37 Another view. Photos: RMLS Another view. Photos: RMLS Image 17 of 37 Not just a sliding door, but a sliding wall. Photos: RMLS Not just a sliding door, but a sliding wall. Photos: RMLS Image 18 of 37 Floating stairs. Photos: RMLS Floating stairs. Photos: RMLS Image 19 of 37 Master bedroom.Photos: RMLS Master bedroom.Photos: RMLS Image 20 of 37 Image 21 of 37 Alt view. Photos: RMLS Alt view. Photos: RMLS Image 22 of 37 World's sexiest bathroom door. Photos: RMLS World's sexiest bathroom door. Photos: RMLS Image 23 of 37 Master bath. Photos: RMLS Master bath. Photos: RMLS Image 24 of 37 Master bath, continued. Photos: RMLS Master bath, continued. Photos: RMLS Image 25 of 37 Image 26 of 37 Hall view. Photos: RMLS Hall view. Photos: RMLS Image 27 of 37 Detail.Photos: RMLS Detail.Photos: RMLS Image 28 of 37 Wine cellar. Photos: RMLS Wine cellar. Photos: RMLS Image 29 of 37 Lower level den. Photos: RMLS Lower level den. Photos: RMLS Image 30 of 37 Image 31 of 37 Outside. Photos: RMLS Outside. Photos: RMLS Image 32 of 37 More outside. Photos: RMLS More outside. Photos: RMLS Image 33 of 37 So much outside. Photos: RMLS So much outside. Photos: RMLS Image 34 of 37 Patio and view. Photos: RMLS Patio and view. Photos: RMLS Image 35 of 37 Image 36 of 37 The whole layout. Photos: RMLS The whole layout. Photos: RMLS Image 37 of 37 San Francisco home prices: affordable to only eight percent of households? 1 / 37 Back to Gallery

Despite the first drop in home values since 2011 — posted at the close of 2015– San Francisco real estate still prices are still at record highs. This means that affordability is record low. How low? Does only eight percent of households earning enough to afford current home prices sound low enough? The only time it’s been lower, incidentally, is right before the crash of 2007.

Indeed, per a recent report from Paragon Real Estate, that percentage is the city’s new reality. “The California Association of Realtors just released its Housing Affordability Index (HAI) for the 4th quarter of 2015, which measures the percentage of households that can afford to buy the median priced single family dwelling (house) – and San Francisco is now 3 percentage points above its all-time low of 8 percent, last reached in Q3 2007.” In the HAI analysis, three factors affect affordability: median house price, mortgage interest rates and household income.

Paragon’s analysis of the HAI includes local data, compared across neighborhood, city, county, and country. The gallery above highlights many of the resulting charts (for instance, that the monthly house payment in SF was $6,350 at the close of 2015, compared to the national median payment of $1,150). The data on the city’s rental market is also striking. And to illustrate, we included a property that exemplifies the trend in astronomical home appreciation in a very short time, rendering homes that were already expensive now doubly so–in less than two years. With such increases, it’s not hard to believe only eight percent of households make enough to own homes here.

But if that percentage is true, who’s paying for the other 92 percent?

Anna Marie Erwert writes from both the renter and new buyer perspective, having (finally) achieved both statuses. She focuses on national real estate trends, specializing in the San Francisco Bay Area and Pacific Northwest. Follow Anna on Twitter: @AnnaMarieErwert