Housing Bubble
California's Housing Affordability flat
April 10, 2003
LOS ANGELES (April 10) – The percentage of households in California able to afford a median-priced home was 30 percent in February, unchanged compared to the same period a year ago, according to a report released today by the California Association of REALTORS® (C.A.R.). The February Housing Affordability Index (HAI) increased one percentage point from 29 percent in January 2003.
The minimum household income needed to purchase a median-priced home at $327,600 in California in February was $77,450, based on a typical 30-year, fixed-rate mortgage at 5.93 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $75,390 in February 2002, when the median price of a home was $294,860 and the prevailing interest rate was 6.85 percent.
At 65 percent, the High Desert was the most affordable region in the state, followed by Riverside/San Bernardino at 44 percent. Monterey and Santa Barbara were the least affordable regions in the state at 19 percent, followed by the Northern Wine Country at 21 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 *
Feb-03 Jan-03 Feb-02
California 30 29 30
California - Condos 41 42 44
United States 59 59 58
C.A.R. REGION
Central Valley 40 40r 45
High Desert 65 65 68
Los Angeles 31 30 33
Monterey Region 19 19 18
Northern California 36 36 36
Northern Wine Country 21 20 21
Orange County 25 25 30
Palm Sprgs/Lwr Desert 22 22 27
Riverside/SBernardino 44 45 48
Sacramento 43 44 50
San Diego 22 22 25
San Francisco Bay Area 25 25 23
San Luis Obispo 23 22 27
Santa Barbara County 19 21 20
Santa Clara 29 31 27
Ventura 32 n.a. 36
COUNTY
Alameda 24 24 24
Contra Costa 15 16 17
Fresno 46 46 50
Kern 57 58 63
Marin 20 21 21
Merced 34 32 40
Riverside 36 38 42
San Bernardino 50 48 55
San Francisco 15 15 17
San Joaquin 34 33 35
San Mateo 20 20 20
Santa Cruz 20 20 20
Sonoma 21 21 21
Stanislaus 40 40 43
* -- percentage of California households that can afford to purchase a
median-priced home
r -- revised
Source: The California Association of REALTORS
