California's Housing Affordability Index Drops

July 12, 2002

Seven Percentage Points In May, C.A.R. Reports

LOS ANGELES ? The percentage of households in California able to afford a median-priced home decreased by seven percentage points in May compared to a year ago, according to a report released today by the California Association of REALTORS® (C.A.R.).

The May 2002 Housing Affordability Index (HAI) stood at 27 percent, down seven points from 34 percent in May 2001, according to C.A.R. The May HAI was unchanged compared to April 2002, when it also was 27 percent.

"Double-digit percentage increases in the cost of a home continue to impact the ability of many households to purchase a home in California," said C.A.R. President Robert Bailey. "The median price of a home in California jumped 25.5 percent in May to $321,130, compared to $255,860 a year ago."

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.

C.A.R.'s June existing home sales and price report will be released July 25.

# # #

CALIFORNIA HOUSING AFFORDABILITY INDEX *

 

May-02

Apr-02

 

May-01

 

California

27

27

 

34

r

California - Condos

40

41

 

45

r

United States

56

56

 

56

r

C.A.R. Region

         

Central Valley

41

43

r

47

r

High Desert

66

67

 

69

r

Los Angeles

32

31

 

37

r

Monterey Region

15

17

 

16

r

Northern California

34

35

 

38

r

Northern Wine Country

17

17

r

18

 

Orange County

22

23

 

29

r

Palm Sprgs/Lwr Desert

21

20

 

29

r

Riverside/SBernardino

44

45

 

47

r

Sacramento

44

46

 

50

r

San Diego

20

22

 

26

r

San Francisco Bay Area

17

17

 

20

r

San Luis Obispo

21

21

 

28

r

Santa Barbara Area

24

14

 

26

r

Santa Clara

20

21

 

22

r

Ventura

32

32

 

39

r

COUNTY

         

Alameda

18

17

 

22

r

Contra Costa

9

11

 

14

r

Fresno

50

52

 

53

r

Kern

59

61

r

62

r

Marin

15

14

 

17

r

Merced

38

40

 

48

 

Riverside

39

36

 

41

r

San Bernardino

52

53

 

54

r

San Francisco

12

13

 

12

r

San Joaquin

31

34

 

38

 

San Mateo

16

15

 

17

r

Santa Cruz

15

16

r

15

r

Sonoma

18

17

 

19

r

Stanislaus

41

42

 

44

r

* -- percentage of California households that can afford to purchase a median-priced home

r -- revised

Source: California Association of REALTORS


Contact ALTA at 202-296-3671 or [email protected].