Features

State housing affordability continues downward spiral

The Associated Press
Friday August 09, 2002

LOS ANGELES— The number of Californians able to afford their own homes decreased 5 percentage points compared with a year earlier, bucking a national trend of greater affordability, according to an industry report released Thursday. 

The percentage of households in California able to afford a median-priced home in June was 27 percent, according to the California Association of Realtors. 

On a month to month basis, the figure declined 1 percentage point, from 28 percent in May, CAR said. 

Across the country, 55 percent of households could afford to buy a median priced home, up from 54 percent in June 2001. 

The San Francisco Bay area remained one of the most exclusive regions in the country, where just 17 percent could afford to own, down from 19 percent a year ago. 

Ownership also grew more expensive in Los Angeles, where 31 percent of households could afford their own home, down from 35 percent in June 2001. 

The high desert region is still the most affordable region of the state, where 66 percent can afford ownership, down from 67 percent in 2001. 

The median price of a single family detached home was $324,370 in June, up 21.3 percent from $267,410 a year earlier, CAR said.