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Middle-class households priced out of California

Middle-class households priced out of California

By Ron Trujillo/ron@calhomenews.com

This will likely come as no surprise for any middle-class family looking to buy a home — California is unaffordable.

No county in the state, from San Diego to Siskiyou, is affordable for those living in the region, according to ATTOM Data Solutions. The report determined affordability for average wage earners by calculating the amount of income needed to make the monthly house payment — including mortgage, property taxes and insurance — on a median-priced home, assuming a 3% down payments and a 28% maximum front-end debt to income ratio.

Please remember debt-to-income is based only on the housing payment, and does not include other debts, such as auto loans, credit cards or college loans.

In some areas, the disparity is great — the median-home price is four times the annual income, in others the difference is more reasonable. Regardless, no county is affordable for the average income-earner.

Nationwide, only 32% of counties are affordable for residents, according to ATTOM.

“Coastal markets are in the epicenter of the U.S. home affordability crisis, but affordability aftershocks are now being felt further inland as housing refugees migrate from the high-cost coastal markets to lower-priced markets in the middle of the country where good jobs are available,” says Daren Blomquist, senior vice president with ATTOM Data Solutions.

Feature photo by Trekandshoot/Shutterstock

Wealthy ZIP codes not necessarily highest-priced housing communities

Here’s a big-time head-scratcher — many of the most expensive housing markets are not the highest-earning ZIP codes in the nation.

In fact, only 27 of the priciest housing markets crack the top 100 highest-earning regions, according to a new PropertyShark report. And many of California’s priciest areas dont’ make the high-income list.

Only six California ZIP codes are listed among the 20 wealthiest ZIP codes, led by Ross, Portola Valley, Stanford and San Diego in the top 10 nationwide. On the flip side, 12 California ZIP codes are listed as the most expensive markets in the nation, including Beverly Hills, Santa Monica, Palo Alto and Los Altos — ranked Nos. 5-8, respectively.

The Los Angeles region — one of the most expensive markets in the nation — claims only three of the highest-earning ZIP codes.

In short, Bay Area beats SoCal for bragging rights, at least when it comes to income.

A look at a handful of counties in the state:

Fresno

Annual income needed to buy: $66,164
Annual income: $42,510
Percent of income to buy: 43.6%

Los Angeles

Annual income needed to buy: $151,055
Annual income: $61,737
Percent of income to buy: 68.5%

Sacramento

Annual income needed to buy: $86,346
Annual income: $58,513
Percent of income to buy: 41.3%

San Diego

Annual income needed to buy: $139,218
Annual income: $59,202
Percent of income to buy: 65.8%

San Francisco

Annual income needed to buy: $324,943
Annual income: $106,951
Percent of income to buy: 85.1%

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