Posted on 01/08/2005 8:18:52 PM PST by Citizen James
California is now home to the 11 least-affordable housing markets in the entire nation, according to a new report, the National Association of Home Builders/Wells Fargo Housing Opportunity Index.
"It used to be that California dominated the 'bottom 10' list of least-affordable metropolitan areas. Now we are the bottom 10 -- and then some," said Robert Rivinius, chief executive officer of the California Building Industry Association. "What's worse is that even in California's most affordable market -- Tulare County -- less than half of the county's residents can afford a median-priced home."
The index found that during the third quarter of 2004, 19 of the bottom 25 housing markets nationally were in California. And of the 43 least affordable markets in the nation, more than half -- 25 -- were in California.
The least-affordable market out of 162 metropolitan areas nationwide was Santa Barbara County, where a family earning the median income could afford only 4.9 percent of area homes. The next four least-affordable areas were San Diego County, Monterey County, Los Angeles County, and Orange County.
In comparison, the NAHB survey found that in the nation's most affordable market, Lima, Ohio, 90.5 percent of homes sold during the third quarter of 2004 were affordable to families earning the area's median income.
The median price for a home in Santa Barbara County in November 2004 was $668,750, according to the California Association of Realtors. At the same time, the median priced home in Lima, Ohio, was $66,722.
Among larger metro areas nationwide, the most affordable were Grand Rapids, Mich., where 86 percent of the homes were considered affordable, and St. Louis, Mo., where the affordability rate was 83.7 percent, the report said.
The Housing Opportunity Index calculates the share of homes sold in an area that would have been affordable to a family earning the median income. For income, NAHB uses the annual median family income estimates for metropolitan areas published by the Department of Housing and Urban Development. NAHB assumes that a family can afford to spend 28 percent of its gross income on housing, a conventional assumption in the lending industry. That share of median income is then divided by 12 to arrive at a monthly figure. On the cost side, the monthly principal and interest is based on a 30-year fixed-rate mortgage with a 10 percent down payment. The interest rate is a weighted average of fixed and adjustable rates during that quarter. The cost also includes estimated property taxes and property insurance.
They have this new invention called "air conditioning" in their homes, cars, and places where they work. They don't live in tents you know.
It's still preferable to living in a place where half the year the temperatures resemble freezer settings.
wow. Just curious.
What's the average commute to work like out there? I would be willing to live a couple of counties away from the metro area to escape the high costs if possible.
Me too. It was 57 degrees here at 7:00 p.m. tonight, and that's cold enough for us. LOL!
If you know anything about real estate in California it does go up and down. Historically whenever it goes down it comes back and far surpasses previous highs. There is only so much real estate available to live on here..no room for urban spread due to being squeezed between ocean and mountains. That's why our prices continue to skyrocket...there's little availability in housing. Like anything in business, where there is high demand and low availability, the price goes way up. Therefore the "bubble" theory is weak. There is simply little room for new housing in beach towns and most people want to live in beach towns with great weather. As far as whining for government assistance if the supposed "bubble" bursts,...most make too much to qualify for any government aid out here. The whining you hear is from the illegals.
Maybe we need to start a "California Wuss Bump" list.
They have this new invention called "air conditioning" in their homes, cars, and places where they work. They don't live in tents you know.
Sitting in air conditioning half the year, looking out the window at cactus, weird lizards and horned toads isn't my idea of a good time. But hey, everyone is different.
I was in Phoenix one time, it was so &%# hot, it was like the day the earth stood still. Not a soul on the streets, everyone hunkering down inside with the drapes pulled. Nice place to visit though.
We are so spoiled. I must say though, this rain is getting a little old now, but we really do need it. A few weeks ago we actually saw some frost on our spa cover. We all ran out and took pictures of it. Had a good belly laugh afterwards while watching the Midwest under artic conditions on the TaaVaaa.
Nope...one of my best friends has a charter service there....most folks have to live way up Keys from Key West and even then it's still ridiculous.
I live in Ventura and most residents support preservation of areas of natural beauty. I agree, it also contributes to high home prices. I'm sure you support things that protect home values in your area of residence too. It also protects and adds tourist dollars to our economy. Like anywhere, people pay high bucks to live near the most beautiful and pleasant areas as well they should. People can pay high prices for quality clothes, gadgets, and toys or cheap prices for poor quality. It's a choice we all make. We pay a lot to live out here but we get a lot in return just like anything in life.
Worst weather for me was in Miami. As soon as I would get out of my car at 8AM to walk through the parking lot to my office, my clothes started sticking to me. Of course, at 2PM everyday like clockwork from May to September the sky would open up and the whole area would get flooded.
Exactly!
Thomas Sowell has written extensively about this, but in short, the most liberal places in the country just happen to be the most expensive.
Price for a one-way rental of a 26-foot moving van -
- from Los Angeles to Las Vegas: $1,166
- from Las Vegas to Los Angeles: $223
- from Los Angeles to Phoenix: $1,278
- from Phoenix to Los Angeles: $103
Been there done that. I was in Dallas one time and the sweat was literally jumping off my body. It was hellish. If they made me stay there, I would have become a sadistic murderer. They kept telling me I'd get used to it.
I just laughed hysterically.
Been to Chicago in February?
geez...that's a bit over the top.
I think a mobile home is a good money saver. If I had a mind to, I'd live in one but my mother would cry shame and say that's not why she moved to America. If you really think about it, a trailer or halfway decent doublewide and a lot of money can be saved for enjoying the finer things in life instead of paying moronic taxes and whatnot. It's too bad snotty libs wanting a Jeff Foxworthy experience are ruining it for sensible people like myself.
No, you wouldn't. Plenty of people do this, but they have to suffer through 1-3 hour, parking lot commutes everyday. It ain't worth it.
It was a killing field when Roy DeMeo was in action..lol
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