California's Housing Affordability Index fell four points to 14 percent in August
October 6, 2005
lowest on record since 1989
The percentage of households in California able to afford a median-priced home stood at 14 percent in August, a 4 percentage-point decrease compared with the same period a year ago when the Index was at 18 percent, according to a report released today by the California Association of REALTORS® (C.A.R.). The August Housing Affordability Index (HAI) declined 2 percentage points compared with July, when it stood at 16 percent.
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. HOUSING AFFORDABILITY INDEX * | |||||
| Aug-05 | Jul-05 | Aug-04 | |||
| California | 14 | 16 | 18 | ||
| California - Condos | 21 | 22 | 27 | ||
| United States | 48 | 49 | 54 | ||
| C.A.R. REGION | |||||
| Central Valley | 17 | 18 | 26 | ||
| High Desert | 28 | 30 | 42 | ||
| Los Angeles | 12 | 14 | 17 | ||
| Monterey Region | 9 | 9 | 12 | ||
| Northern California | 15 | 16 | 20 | ||
| Northern Wine Country | 7 | 7 | 13 | ||
| Orange County | 11 | 11 | 11 | ||
| Palm Sprgs/Lwr Desert | 11 | 11 | 13 | ||
| Riverside/SBernardino | n.a. | 15 | 21 | ||
| Sacramento | 19 | 20 | 26 | ||
| San Diego | 9 | 9 | 10 | ||
| San Francisco Bay Area | 12 | 12 | 14 | ||
| San Luis Obispo | 10 | 10 | 14 | ||
| Santa Barbara County | 6 | 7 | 12 | ||
| Santa Clara | 18 | 18 | 23 | ||
| Ventura | 13 | 13 | 14 | ||
| COUNTY | |||||
| Alameda | 11 | 11 | 15 | ||
| Contra Costa | 10 | 10 | 10 | ||
| Fresno | 18 | 21 | 27 | ||
| Marin | 11 | 11 | 14 | ||
| Merced | 10 | 11 | 21 | ||
| Riverside | n.a. | 15 | 18 | ||
| San Bernardino | n.a. | 19 | 28 | ||
| San Francisco | 9 | 9 | 11 | ||
| San Joaquin | 11 | 11 | 19 | ||
| San Mateo | 12 | 12 | 15 | ||
| Santa Cruz | 10 | 11 | 14 | ||
| Sonoma | 7 | 7 | 13 | ||
| Stanislaus | 16 | 17 | 28 | ||
* -- percentage of California households that can afford to purchase a median-priced home
r – revised
Source: California Association of REALTORS®
| Median Prices By Region - Current Month vs. Year Ago | |||||
| Aug-05 | Jul-05 | Aug-04 | |||
| Calif. (sf) | $568,890 | $540,900 | $473,520 | r | |
| Calif. (condo) | $433,040 | $426,320 | $370,700 | r | |
| C.A.R. REGION | |||||
| Central Valley | $363,720 | $356,260 | $289,360 | ||
| High Desert | $305,700 | $298,950 | $236,890 | ||
| Los Angeles | $564,340 | $543,890 | $455,590 | ||
| Monterey Region | $727,500 | $729,250 | $613,120 | ||
| Monterey County | $690,000 | $698,000 | $555,000 | ||
| Santa Cruz County | $783,000 | $759,000 | $639,000 | ||
| Northern California | $440,420 | $418,630 | $366,050 | ||
| Northern Wine Country | $640,700 | $639,670 | $505,790 | ||
| Orange County | $716,300 | $706,820 | $649,590 | ||
| Palm Springs/Lower Desert | $371,020 | $371,390 | $326,740 | ||
| Riverside/San Bernardino | NA | $384,910 | $310,120 | ||
| Sacramento | $394,450 | $387,810 | $328,410 | ||
| San Diego | $616,870 | $616,050 | $579,040 | ||
| San Francisco Bay | $730,360 | $724,890 | $644,920 | ||
| San Luis Obispo | $566,510 | $559,900 | $454,720 | ||
| Santa Barbara County | $819,850 | $654,170 | $541,670 | r | |
| Santa Barbara S.Coast | $1,301,000 | $1,340,000 | r | $997,300 | r |
| N. Santa Barbara County | $462,880 | $462,690 | $411,700 | ||
| Santa Clara | $760,000 | $750,000 | $625,000 | ||
| Ventura | $685,680 | $694,690 | $626,730 | ||
na - not available
r - revised
The minimum household income needed to purchase a median-priced home at $568,890 in California in August was $133,800, based on an average effective mortgage interest rate of 5.87 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home was up from $110,980 in August 2004, when the median price of a home was $473,520 and the prevailing interest rate was 5.83 percent.
The minimum household income needed to purchase a median-priced home at $220,000 in the U.S. in August 2005 was $51,740.
At 28 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 19 percent. The Santa Barbara region was the least affordable in the state at 6 percent.
Source: California Association of REALTORS
Contact ALTA at 202-296-3671 or [email protected].