Report: California has nation's least affordable homes

San Francisco Business Times ^ | 1/7/05 | SF Business Times

[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.

[Clintonfatigued]

I lived in rural California for a long time, and I believe this report. It's too bad, 'cause the California coastline is truly awesome. Anyone who hasn't seen it is missing out.

[martin_fierro]

Here's one of my favorites:

Property Features   

    * Single Family Property
    * County: Santa Clara
    * Detached
    * Ranch
    * Single story
    * Age: 46 year(s) old
    * 3 bedroom(s)
    * 2 bath(s)
    * Living/dining room combination
    * Approximately 1108 sq. ft.
    * Laundry area in garage
    * Fireplace(s)
    * Wall to wall carpeting
    * Vinyl flooring
    * Gas heating
    * Disposal
    * Range and oven
    * Breakfast bar
    * Pantry
    * 2 car garage
    * Attached parking
    * Patio
    * Level lot
    * Located on a cul-de-sac

$514,900

[pepperdog]

I don't understand how anyone could buy that house. They would have to make a hefty salary, are salaries that high in CA?

[bwteim]

"The median priced home in Lima, Ohio, was $66,722."

---

According to the Real Estate News
"Lima, Ohio, Rated Most Affordable U.S. Housing Market in Third Quarter of 2004"
http://www.rismedia.com/index.php/article/articleview/8857/1/1/

"The median sale price of all homes sold in Lima during that period was $82,000. "

[SoCalPol]

are salaries that high in CA?

NO! I am born and raised in San Diego. The med. home
starts at around 1/2 million and that doesn't get you
much. Apt. rents -- the ave. 1 bedroom apt. starts at
around 900.00 a month. I have always lived in a 1 bd rm
apt. I can afford it because I have neved owned a car.

[bwteim]

Gee, If you bought THAT home, you just might not be able to afford this 4/1 mobile home in the Keys....;)

$ 560,000 Mobile Home

Price:$ 560,000.00
Type: Mobile Home
MLS #:523983
Status: Active
Addr:CORAL DR
Beds/Baths:4 / 1
Key: SADDLEBUNCH
Year Built: 1968
Rented: No Exclusive
Waterfront: No
Side: Ocean
Waterfront: No Waterfront
Waterview:No Waterview

[Cobra64]

Unbelievable. We live on Lake James, NC. In the foothills of the Blue Ridge Mtns. 407 ft of shoreline on 1.67 acres, 4,200 sq. ft. custom built house, w/ 3 car oversized garage, (moved in last April) with dock, gazebo, outdoor fireplace, for $700k. That includes the boat lift and a new speed boat.

Both of my kids live in the SF/Berkely neighborhood. We just don't git it. And no, they are not queers or libs either. That is what makes it so much more baffling.

[hoot2]

"Report: California has nation's least affordable homes "

Why doesn't the "government" do something? /s>

[PennsylvaniaMom]

Wow!!! I imagine how much more they could get if only they had cable and didn't have to rely upon that 'retro-charm' antenna on the roof. PS, does the breakfast bar come with stools?

[kstewskis]

One of the biggest reasons why I moved out of state. I was a 3rd generation native, graduated college in '88 (in the medical profession) and there was no way I could afford a house on my own then in CA.

Left, then settled on a 1900 sq. ft coul'd sac home w/ RV parking on the side for $104,000. Who could not make that choice?

[skip_intro]

The median price for a home in Santa Barbara County in November 2004 was $668,750, according to the California Association of Realtors.

The median price for a house in the city of Santa Barbara is pushing $1 million, and we're not talking about mansions here.

[CurlyDave]

I don't understand how anyone could buy that house.

The really interesting part is that the house is probably going to sell within 2 weeks with multiple offers.

I own rentals in that area and the price is just about right. It would be $30k higher if there had been even modest renovations.

[cyborg]

These people haven't been to Long Island.

[cyborg]

THAT HAS TO BE FAKE.

[PennsylvaniaMom]

I own rentals in that area and the price is just about right. It would be $30k higher if there had been even modest renovations.

Curb appeal? It is amazing what a few plants, a couple cans of paint, and little sweat equity can bring.

[cyborg]

Sheesh.

[FreedomCalls]

Here's their list:

	Housing Opportunity Index: 3rd Quarter 2004
	By Affordability Rank
		HOI 3rd Qtr 2004	2004	3rd Qtr 2004	3rd Qtr 2004
	Metro Area	Share of Homes	Median	Median	Affordability
		Affordable for	Family	Sales	Rank
		Median Income	Income	Price	National	Regional
			(000s)	(000s)
	Lima, OH	90.5	52.5	82	1	1
	Saginaw-Bay City-Midland, MI	89.9	55.2	85	2	2
	Lansing-East Lansing, MI	88.8	64.6	116	3	3
	Canton-Massillon, OH	88.6	53.2	104	4	4
	Youngstown-Warren, OH	88.4	49.6	88	5	5
	Cumberland, MD-WV	87.8	43.4	68	6	1
	Mansfield, OH	87.6	50.7	90	7	6
	Rockford, IL	86.7	57.9	108	8	7
	Springfield, IL	86.2	60.1	112	9	8
	Grand Rapids-Muskegon-Hollad, MI	86.0	61.2	128	10	9
	Harrisburg-Lebanon-Carlisle, PA	85.3	60.5	125	11	1
	Peoria-Pekin, IL	84.5	58.2	101	12	10
	Hamilton-Middletown, OH	84.4	64.5	138	13	11
	Tulsa, OK	83.9	54.5	114	14	2
	Columbia, SC	83.7	60.6	121	15	3
	St. Louis, MO-IL	83.7	65.9	119	15	12
	Akron, OH	82.9	60.3	119	17	13
	Toledo, OH	82.8	56.8	115	18	14
	Erie, PA	82.6	51.4	98	19	2
	Cincinnati, OH-KY-IN	81.9	64.0	135	20	15
	Duluth-Superior, MN-WI	81.7	53.2	109	21	16
	Dayton-Springfield, OH	81.3	57.7	114	22	17
	Cleveland-Lorain-Elyria, OH	81.0	59.9	125	23	18
	Oklahoma City, OK	80.7	52.1	107	24	4
	Pueblo, CO	80.1	45.0	117	25	1
	Flint, MI	79.9	55.2	129	26	19
	Salem, OR	79.3	55.4	147	27	2
	Greensboro--Winston-Salem--High Point, NC	79.1	55.5	130	28	5
	Lancaster, PA	79.0	61.6	147	29	3
	Spokane, WA	78.8	54.6	122	30	3
	Reading, PA	78.7	61.7	134	31	4
	Birmingham, AL	78.6	55.2	129	32	6
	Champaign-Urbana, IL	78.3	60.4	129	33	20
	Buffalo-Niagara Falls, NY	78.1	53.6	95	34	5
	Wilmington-Newark, DE-MD	78.0	71.1	185	35	7
	Greenville-Spartanburg-Anderson, SC	77.5	54.9	137	36	8
	Rochester, NY	77.5	58.8	115	36	6
	Atlanta, GA	77.0	69.0	169	38	9
	Pocatello, ID	76.6	49.2	118	39	21
	Tallahassee, FL	76.1	56.5	139	40	10
	Fayetteville, NC	75.9	46.9	117	41	11
	Pittsburgh, PA	75.7	55.1	122	42	7
	Vineland-Millville-Bridgeto	75.6	53.2	118	43	8
	Pensacola, FL	75.5	50.7	132	44	12
	Ann Arbor, MI	75.1	77.7	197	45	22
	Detroit, MI	74.7	66.8	157	46	23
	Raleigh-Durham-Chapel Hill, NC	74.4	69.8	169	47	13
	Charlotte-Gastonia-Rock Hill, NC-SC	73.5	61.8	153	48	14
	Fort Worth-Arlington, TX	73.4	62.7	148	49	15
	Salt Lake City-Ogden, UT	73.1	61.1	178	50	4
	Colorado Springs, CO	72.7	62.1	182	51	5
	Columbus, OH	72.3	63.8	155	52	24
	Gainesville, FL	72.2	52.2	135	53	16
	San Antonio, TX	72.0	51.5	120	54	17
	Great Falls, MT	71.7	45.3	121	55	6
	Yuma, AZ	71.7	39.8	105	55	6
	Albuquerque, NM MSA	71.6	54.2	156	57	8
	Milwaukee-Waukesha, WI	71.0	63.8	158	58	25
	Springfield, MA	71.0	59.4	160	58	9
	Richmond-Petersburg, VA	70.7	63.8	179	60	18
	Ocala, FL	70.6	42.4	110	61	19
	Olympia, WA	70.5	66.1	185	62	9
	Eugene-Springfield, OR	70.3	54.3	158	63	10
	Lakeland-Winter Haven, FL	70.1	46.7	123	64	20
	Jacksonville, FL	69.2	56.6	155	65	21
	Minneapolis-St. Paul, MN-WI	68.4	76.4	220	66	26
	Houston, TX	68.2	61.0	152	67	22
	Provo-Orem, UT	67.7	56.1	182	68	11
	Phoenix-Mesa, AZ	67.5	58.6	172	69	12
	Fort Collins-Loveland, CO	67.4	66.5	210	70	13
	Hartford, CT	67.1	73.9	195	71	10
	Asheville, NC	67.0	49.7	148	72	23
	Austin-San Marcos, TX	66.6	66.9	174	73	24
	Dallas, TX	66.4	65.1	165	74	25
	Galveston-Texas City, TX	66.3	59.8	147	75	26
	Melbourne-Titusville-Palm Bay, FL	66.3	54.7	150	75	26
	Trenton, NJ	66.3	83.8	200	75	11
	Dover, DE	65.5	51.8	168	78	28
	Portland-Vancouver, OR-WA	65.5	67.9	201	78	14
	Denver, CO	65.1	69.5	224	80	15
	Allentown-Bethlehem-Easton, PA	64.7	59.7	160	81	12
	Norfolk-Virginia Beach-Newport News, VA-NC	64.5	55.9	164	82	29
	El Paso, TX	64.4	37.7	98	83	30
	Tucson, AZ	63.8	50.4	160	84	16
	Baltimore, MD	63.5	68.6	195	85	31
	Charleston-North Charleston, SC	63.4	55.9	168	86	32
	Philadelphia, PA-NJ	62.7	68.8	180	87	13
	Orlando, FL	62.5	54.7	168	88	33
	Pittsfield, MA	62.5	56.9	160	88	14
	Boise City, ID	62.3	55.0	176	90	17
	Boulder-Longmont, CO	62.3	81.9	275	90	17
	Tampa-St. Petersburg-Clearwater, FL	62.3	51.2	150	90	34
	Bremerton, WA	62.2	63.5	194	93	19
	New Haven-Meriden, CT	61.9	71.6	196	94	15
	Hagerstown, MD	61.2	54.4	175	95	35
	Greeley, CO	60.7	55.4	186	96	20
	Tacoma, WA	60.4	62.1	197	97	21
	Brazoria, TX	59.6	62.9	182	98	36
	New London-Norwich, CT-RI	58.9	66.7	205	99	16
	Fort Walton Beach, FL	58.1	54.7	171	100	37
	Fort Myers-Cape Coral, FL	56.8	54.1	173	101	38
	Nashua, NH	56.7	78.9	238	102	17
	Flagstaff, AZ	56.3	51.8	189	103	22
	Punta Gorda, FL	54.0	48.6	158	104	39
	Waterbury, CT	53.3	64.9	205	105	18
	Bellingham, WA	53.1	57.9	199	106	23
	Chicago, IL	50.1	69.6	238	107	27
	Brownsville-Harlingen-San Benito, TX	50.0	31.4	99	108	40
	Seattle-Bellevue-Everett, WA	50.0	71.9	267	108	24
	Panama City, FL	49.8	49.2	183	110	41
	Providence-Fall River-Warwick, RI-MA	49.6	60.0	205	111	19
	West Palm Beach-Boca Raton, FL	49.2	62.1	215	112	42
	Honolulu, HI	49.1	65.7	272	113	25
	Worcester, MA-CT	49.1	69.3	247	113	20
	Sarasota-Bradenton, FL	48.8	54.3	197	115	43
	Washington, DC-MD-VA	48.0	85.4	325	116	44
	Fort Pierce-Port Lucie, FL	47.9	50.8	180	117	45
	Middlesex-Somerset-Hunterdon, NJ	47.9	92.0	310	117	21
	Fort Lauderdale, FL	47.8	57.7	198	119	46
	Visalia-Tulare-Porterville,	46.4	42.1	163	120	26
	Bakersfield, CA	45.6	46.6	172	121	27
	Medford-Ashland, OR	45.3	52.1	202	122	28
	Naples, FL	44.2	63.3	260	123	47
	Newburgh, NY-PA	42.8	65.5	230	124	22
	Las Vegas, NV-AZ	42.2	54.7	229	125	29
	Reno, NV	41.1	63.2	260	126	30
	Atlantic-Cape May, NJ	40.7	61.7	250	127	23
	Boston, MA-NH	40.0	82.6	340	128	24
	Danbury, CT	38.5	96.5	425	129	25
	Redding, CA	37.5	46.4	204	130	31
	Portsmouth-Rochester, NH-ME	37.1	69.6	266	131	26
	Chico-Paradise, CA	36.3	47.8	233	132	32
	Newark, NJ	34.5	80.3	325	133	27
	Bergen-Passaic, NJ	29.8	83.5	328	134	28
	Lawrence, MA-NH	29.7	75.5	329	135	29
	San Jose, CA	26.5	105.5	538	136	33
	Fresno, CA	24.3	45.9	230	137	34
	Lowell, MA-NH	23.3	80.0	387	138	30
	Riverside-San Bernardino, CA	21.6	54.3	295	139	35
	New Bedford, MA	19.2	55.0	272	140	31
	Yuba City, CA	18.8	46.3	243	141	36
	Ventura, CA	17.7	77.4	490	142	37
	Vallejo-Fairfield-Napa, CA	17.2	73.9	399	143	38
	Oakland, CA	16.7	82.2	470	144	39
	Barnstable-Yarmouth, MA	15.6	61.8	345	145	32
	Sacramento, CA	15.5	64.1	340	146	40
	Santa Rosa, CA	14.4	74.6	465	147	41
	Jersey City, NJ	13.3	53.8	315	148	33
	Modesto, CA	12.9	52.0	275	149	42
	New York, NY	12.9	54.4	365	149	34
	Nassau-Suffolk, NY	12.8	85.3	412	151	35
	San Francisco, CA	12.0	95.0	664	152	43
	Stockton-Lodi, CA	10.7	55.1	329	153	44
	Merced, CA	10.0	43.9	247	154	45
	Santa Cruz-Watsonville, CA	9.0	75.3	560	155	46
	San Luis Obispo-Atascadero-Paso Robles,CA	8.9	61.7	476	156	47
	Yolo, CA	8.0	60.2	364	157	48
	Orange County, CA	7.9	74.2	525	158	49
	Los Angeles-Long Beach, CA	6.2	53.5	410	159	50
	Salinas, CA	5.9	60.8	504	160	51
	San Diego, CA	5.4	63.4	470	161	52
	Santa Barbara-Santa Maria-Lompoc, CA	4.9	64.7	447	162	53

[dufekin]

Actually, the government should do something. But what is that something? That's right, bozo: allow builders to build houses without literally decades of red tape and pontificating about deeply misplaced environmental values. And quit discovering new mutations of small pieces of the genetic code of the common house mouse to declare "endangered."

[techworker]

Ah crap and here I am moving from #5 Youngstown-Warren Ohio, to next to last San Diego.