Housing Affordability in OC Plummets to 21 Percent

A surge in demand for housing in the Southland and statewide during the second quarter of this year drove down affordability for prospective buyers, the California Association of Realtors reported today.

According to the CAR, 21 percent of households in Orange Councty could afford to purchase a single-family home at the median price of more than $713,000. That’s down from 22 percent in the first quarter of this year, but better than 20 percent in the second quarter last year, according to the association.

To afford an Orange County house, a household would require a minimum annual income of over $141,000 to make monthly payments of $3,530.

In Los Angeles County, 32 percent of households could afford to purchase a single-family home in the metropolitan Los Angeles region at the median price of nearly $440,620. That’s down from 35 percent in the first quarter of this year and 33 percent in the second quarter last year, according to the association.

To afford a house in the Los Angeles area, a household would require a minimum annual income of $87,180 to make monthly payments of $2,180 -- including principal, interest, and taxes on a 30-year fixed-rate mortgage at 3.95 percent interest rate.

Statewide, 30 percent of Californians could afford a median-priced house, according to CAR’s Traditional Housing Affordability Index.

Just 10 percent of households could afford to purchase a median-priced house in San Francisco, according to CAR data. The most affordable region was Kings County, where 62 percent could afford such a residence.

Nationwide, 57 percent of households could afford to buy a median-priced house, according to CAR.

City News Service