What should be the minimum wage in the Bay Area for affordable housing?

Question

so that regular people can afford housing in the Bay area.How much does the average home cost in the Bay Area?About a million dollarsHow much do you need to get a million dollar loan?For a $1 million home, a 20% down payment would be $200,000.How many hours is it legal to work per year in the bay area?35 hours/week * 52 weeks/year = 1,820 hours/yearWhat should be the minimum wage then?$200,000 / 1,820 hours = approximately $109.89 per hourCan you explain the flaws in my reasoning?

mytailorisrich · Accepted Answer

What is your reasoning?

jaclaz · Answer

It seems like you are reasoning to be living one year out of thin air and be able to accumulate in that year 200,000 US$ to be used as the down payment for the 1,000,000 house.Since you cannot live with nothing, it will take you more than one year to save those 200,000, and don't forget that for many years later you will have to pay the mortgage on the "other" 800,000 dollars.

gsatic · Answer

The fix is to make monthly rent = monthly mortgage payments (which ever is less) when ever and where ever there is a mismatch.