ChatGPT Told Me Much House I Can Afford in California on a $60K Salary -- Do Experts Agree?
Ask anybody who lives in California what they love about the state, and they’ll probably say “the nature” and “the weather.” Fair.
The Golden State does boast a gentle Mediterranean climate with far more sunny days than dreary ones (especially in SoCal). And nature — yes: beaches, lakes, mountains and forests.
All so nice and so pretty and so ... unbelievably expensive. California is now widely considered even more expensive than Hawaii, making it the priciest state to live in.
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What does this mean for Americans who are not making six figures? According to the latest available data from the U.S. Census Bureau, the median household income is $87,760, but note that median does not mean “typical” or “average”; it’s the exact middle number when you look at a row of numbers from lowest to highest. Millions of Americans make less — or significantly less — than $87,000 a year. According to BLS data on percentile wages, 90% of Americans earn less than $60,320.
If you’re among the lucky ones who do pull in $60,000 a year, where in California can you live, and how much house can you afford? I asked the almighty AI bot, ChatGPT. I then presented what it told me to two real estate experts.
Bakersfield
Average Home Value: $391,443
ChatGPT said to check out 900- to 1,500-square-foot homes in Bakersfield, a city along the Kern River about two hours by car north of Los Angeles. The cost of living there is 10% higher than the national average, but the city is still considered “affordable” for California.
Sain Rhodes, a real estate expert at Clever Offers, said ChatGPT was “right on this one,” adding, “you can get a decent single-family home or condo.” But Rhodes did spot some considerable — and potentially expensive — drawbacks with this location.
“During the summer, the area is very hot, and air conditioning can be very expensive,” Rhodes said. “You can also expect to get very low school ratings relative to peer areas, and the job market, other than oil or agriculture, can get a bit stale.”
Fresno
Average Home Value: $386,426
Fresno is in California’s San Joaquin Valley, roughly three hours by car from either Los Angeles (south) or San Francisco (north). The cost of living there is 5% higher than the national average, but for California, it’s a bargain. ChatGPT suggested looking into 900- to 1,500-square-foot homes in Fresno if you’re living on a $60,000 salary.
ChatGPT wasn’t “wrong,” per se, to cite Fresno as a place for a potential homeowner earning $60,000 a year to buy, but this city has the same potentially costly issues as Bakersfield.
“The Fresno market is better for cultural amenities and walkability, but the same agricultural valley weather and limited employer diversity still apply,” Rhodes said. Yet Fresno might just be worth it — especially if this is your first rodeo with homeownership. “I have seen some first-time buyers succeed in Fresno because the market is more competitive and sellers are more apt to negotiate,” Rhodes said.
Redding
Average Home Value: $385,395
Redding is in Northern California, much farther north than Sacramento. The cost of living there is 21% lower than the state average but 10% higher than the national average. The chatbot stressed, as it did with the other two cities, that a $60,000 annual salary would limit buyers to homes no larger than 1,500 square feet.
Is Redding as good a recommendation as ChatGPT suggests? Ben Mizes, president and co-founder at Clever Offers, expressed some doubt, describing it as “peculiar.”
“It is more affordable than most of Northern California,” Mizes said. “However, it is more rural. There will be more space, but also fewer job opportunities and amenities.”
Overall, ChatGPT did a decent job naming a few locations in California where a $60,000 salary could potentially enable homeownership. But, as usual, it left out some fine print that really, really matters.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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