Southern California Home Sales – San Gabriel Valley, Westside, are least-affordable slices of SoCal housing market..
Southern California Home Sales:
So Cal Not Affordable By Middle Class
The Good News Is … It’s Not Getting Any Worse
Trulia has released a new report, and the numbers are not good for the Southern California Real Estate market … at least as far as its relationship with the Middle Class is concerned. If we consider that a $54K a year houshold income is “Middle Class” … then the Middle Class is priced out of most homes in L.A. County. It’s also apparently priced out of most homes in Orange, Ventura, and San Diego counties as well.
Here’s a report from Tim Logan that appeared in today’s L.A. Times:
Los Angeles Times Nov 18, 2014, 6:00 AM PST
“The report also tracked affordability by area code within L.A. County. They found that in the 626 – Pasadena and the San Gabriel Valley – just 11% of median-income-earning households could afford a typical house. In the 310 – the Westside and beach towns – 14% could. In the 213 – Downtown and Central L.A. – that figure was 16% while in 818 and 747 in the San Fernando Valley, it’s 16%.” …
Interest Rates Are Mitigating Effects … But Can This Last?
Costs of ownership in the area are skyrocketing. It’s only the fact that interest rates have ramained at bargain basement prices that have kept them somewhat in check. But this is an effect that won’t last forever. Even though home price gains are slowing, they are still growing faster than incomes. Unless incomes can grow at a faster rate, homeownership in Southern California looks to become more of a dream and less of a reality for many in the future.