The percentage of households in California able to afford a median-priced home stood at 17 percent in April, a 3 percentage-point decrease compared with the same period a year ago when the state housing index was at 20 percent, according to a report recently released by the California Association of Realtors (C.A.R.). The index (HAI) declined 1 percentage point from March, when it stood at 18 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.
The minimum household income needed to purchase a median-priced home at $509,230 in California in April was $120,290, based on an average effective mortgage interest rate of 5.92 percent and assuming a 20 percent down payment. The minimum household income needed to purchase a median-priced home was up from $102,350 in April 2004, when the median price of a home was $452,680 and the prevailing interest rate was 5.42 percent.
The minimum household income needed to purchase a median-priced home at $206,000 in the U.S. in April 2005 was $48,660.
At 34 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 21 percent. The northern wine country region was the least affordable in the state at 8 percent.
C.A.R.’s May 2005 sales and median price report for the state and regions within the state will be released on June 23.
C.A.R. HOUSING AFFORD- ABILITY INDEX * Apr-05 Mar-05 Apr-04 California 17 18 20 California - Condos 24 25 31 United States 50 54 r 57 r C.A.R. REGION Central Valley 2 21 32 High Desert 34 36 52 Los Angeles 16 17 20 Monterey Region 10 10 12 Northern California 15 17 24 Northern Wine Country 8 9 14 Orange County 11 11 13 Palm Sprgs/Lwr Desert 11 n.a. 13 Riverside/SBernardino 20 21 r 28 r Sacramento 21 23 33 San Diego 10 10 14 San Francisco Bay Area 12 12 17 San Luis Obispo 11 13 20 Santa Barbara County 10 9 13 Santa Clara 18 19 24 Ventura 13 14 r 17 COUNTY Alameda 11 12 r 18 Contra Costa 10 10 11 Fresno 24 24 34 Marin 12 11 16 Merced 16 16 30 Riverside 19 19 r 22 r San Bernardino 24 23 r 35 r San Francisco 8 9 12 San Joaquin 14 15 28 San Mateo 10 11 17 Santa Cruz 12 12 15 Sonoma 8 9 15 Stanislaus 19 21 35 (For any local information or statistics, contact The Powerhouse Team at 310-482-2016 or)
Originally published in the Santa Monica Daily Press print edition on June 15, 2005. Read the original PDF.