Housing Bubble
California housing affordability falls in January
March 07, 2003
LOS ANGELES, March 6 -- The percentage of households in California able to afford a median-priced home decreased by two percentage points in January compared to a year ago, according to a report released today by the California Association of REALTORS® (C.A.R.).
The January 2003 Housing Affordability Index (HAI) stood at 29 percent, down two points from 31 percent in January 2002, according to C.A.R. The January HAI increased one percentage point from 28 percent in December 2002.
The minimum household income needed to purchase a median-priced home at $336,740 in California in January was $79,820, based on a typical 30-year, fixed-rate mortgage at 5.96 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $73,650 in January 2002, when the median price of a home was $287,080 and the prevailing interest rate was 6.89 percent.
At 65 percent, the High Desert was the most affordable region in the state, followed by Riverside/San Bernardino at 45 percent. Monterey was the least affordable region in the state at 19 percent, followed by the Northern Wine Country at 20 percent.
C.A.R.'s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The index is the most fundamental measure of housing well-being in the state.
CALIFORNIA HOUSING AFFORDABILITY INDEX *
C.A.R. REGION Jan-03 Dec-02 Jan-02
California 29 28 31
California - Condos 42 42 45
United States 59 57 57
Central Valley 41 39 46
High Desert 65 65 68
Los Angeles 30 31 34
Monterey Region 19 20 19
Northern California 36 35 38
Northern Wine Country 20 21 23
Orange County 25 25 31
Palm Sprgs/Lwr Desert 22 21 26
Riverside/SBernardino 45 46 51
Sacramento 44 43 50
San Diego 22 22 27
San Francisco Bay Area 25 23 24
San Luis Obispo 22 22 25
Santa Barbara County 21 20 21
Santa Clara 31 28 29
Ventura n.a. n.a. 37
COUNTY
Alameda 24 22 25
Contra Costa 16 12 16
Fresno 46 48 51
Kern 58 56 61
Marin 21 21 20
Merced 32 36 42
Riverside 38 37 44
San Bernardino 48 51 54
San Francisco 15 15 17
San Joaquin 33 33 37
San Mateo 20 21 20
Santa Cruz 20 20 20
Sonoma 21 22 23
Stanislaus 40 39 45
* -- percentage of California households that can afford to purchase a
median-priced home
r - revised
Source: California Association of REALTORS®
