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.
Not even by the bus terminal... that's MS13 territory. I'd rather live in Roosevelt than by that bus terminal. You can come live by me with all the sleepy old people. How we've managed not to be overrun with MS13 barbarians is beyond me.
No way!!!
but it's ok, we have nothing to fear, im sure the fish won't give US rabies once we're underwater.
My father purchased this house for forty thousand dollars cash. It's now worth close to four hundred thousand. You can't get affordable housing anymore on Long Island. The real estate situation is bizarre.
Not bad for a third world cesspool, eh Chicken Little?
Reminds me of my block in Bay Ridge. The worst I ever had to put up with were old folks complaining about their pensions and the Arabs moving into the neighborhood. SW Brooklyn (especially Bensonhurst) is the largest open-air geriatric ward in the country.
Wow. That's really mature...
I guess since I've lived in CA most of my life I'm not easily shocked by this.On the plus side CA real estate is a killer investment outperforming the stock market for quite awhile now.My mothers run down 30+ yr old 3 bed two bath a block from the beach is worth close to a mil now.
The house my dad bought in Malverne for $89,000 in 1981 would sell for $500,000 on the market today.
I do not know an am continuously amazed by that.
Due to a recent messy business failure I'm back to renting and I'm living in 1/2 of a new condo in Santa Clara. The couple that owns it paid $600K for it - just built a year ago. It's 1600 sq. ft., 2 floors, nothing special. Some of the other units are already for sale at $650-700 and sell in a few days. There are single homes in the development that go for $1M - $1.3M that are a little bigger with about 200 sq. ft of "yard". They are also selling as fast as they can be built.
Oh, dear... then again, real estate is probably the best investment to make... it's not like we're making more land.
Malverne is nice. The nuclear family can't afford life on Long Island. It's a renter's paradise now. I'm still living here because my house is paid for and I plan to rent rooms to Hofstra trustfund brats. Otherwise, I plan to live like a hermit in my cabin somewheres.
Just think, if homes ever go back down to 250 or 300k in Cal, you'll be able to pick up homes in Hacksaw Arkansas for 20k.
A house can be a blessing or a curse. The house has been the source of unlimited blessings.
Malverne is my favorite town on the south shore, with a nice main street and art cinema (was a "dollar" theatre when I was a kid). The problem is the fact that the schools (Valley Stream District 13 or Lakeview/Malverne) leave much to be desired. If I moved back, I would send my kids to private school.
Where does a young couple out of college who work in LA buy a house? Bakersfield? Tijuana?
Land use restrictions.
If you find out, let me and my wife know.
Now our new governor has given us the wonderful Sierra Nevada Conservancy to help with those land use restrictions. Then they will come in and mandate affordable housing.
Sorry to tell you, bud, but that price would not get you the garage, here.
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