It has long been known that housing in California is quite expensive, but a recent survey helped to put in perspective just how costly it really is to live in California. According to a recent survey conducted by the National Association of Home Builders, Los Angeles has the second-worst home affordability in the country. This was followed up quickly by third place Orange County. Not surprisingly, nearby San Francisco had the worst affordability.
Exploring Home Affordability In Los Angeles
In the fourth quarter of 2015, only 14.9 percent of homes purchased in Los Angeles were considered to be “affordable” when considering the median household income in the area. This is slightly better than the third quarter, which 14.7 percent of homes to be affordable. It was quite the drop in affordability when considering the last quarter of 2015, however, at which time 16.2 percent of homes were considered affordable.
Overall, the median income in Los Angeles was $63,245 last year, representing a 3 percent increase when compared to 2014. Meanwhile, the median selling price of a home was $500,000, representing an 8.7 percent increase when compared to the same time last year. Therefore, despite the increase in median income, the price of homes in the area grew at a much faster pace.
Exploring Home Affordability in Orange County
According to the research, the Santa Ana-Anaheim-Irving area experienced its lowest affordability percentage since the fourth quarter of 2008 with just 16 percent of homes being affordable in the last quarter of 2015. This is a slight drop from the third quarter, at which time 16.2 percent of homes were affordable. It is a more significant drop when compared to the fourth quarter of 2014, at which time 17.1 percent of homes were affordable.
In Orange County, the median income increased by 3 percent to $85,928. Meanwhile, the median selling price increased by 6.8 percent to $625,000.
Exploring Home Affordability in San Francisco
Overall, nearby San Francisco has the worst affordability in the country. According to the survey, just 10.4 percent of homes purchased during the fourth quarter of 2015 were considered affordable. In the third quarter, this figure was slightly higher at 10.5 percent, while the fourth quarter of 2014 saw affordability at 11.1 percent. While the median income in the city was $103,400, the median selling price of a home in San Francisco was $1.025 in the fourth quarter.
Exploring Affordability Throughout the Country
On the national scale, 63.3 percent of homes purchased during the fourth quarter were considered affordable. In the third quarter, the figure was slightly less at 62.2 percent, while the fourth quarter of 2014 saw 62.8 percent of homes as affordable. Meanwhile, the median income was $65,800, representing a 2.97 percent increase as the median price of a home was up by 5.12 percent to $226,000.
If you are interested in learning more about homes in Los Angeles or the surrounding area, contact our team of luxury real estate experts to learn more about the area’s most exclusive communities.
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(all data current as of 5/25/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.