Unaffordable Southern California Housing
Even With Zero Percent Mortgages, Southern California Homes Remain Unaffordable For Most
Anonymous
Even if mortgage rates dropped to zero, typical homes in Los Angeles and Orange counties would still be unaffordable for most buyers. Ziffy.ai analyzed 364 U.S. metro areas and found that L.A.-Orange County ranks fourth-worst in the nation for housing affordability. Monthly mortgage payments would consume too much of local incomes — a major reason why home sales plummeted 25% over the past year.
Only 85,300 homes sold in the region during the year ended in April, according to Orange County Register, the lowest pace since 2005. The crisis is so severe that even in California's Inland Empire — the state's most affordable region — monthly payments still take 28% of median household income.
How Affordability Gets Measured
Ziffy.ai looked at whether a monthly house payment at the median listing price exceeded 30% of local median household income. This 30% threshold is the standard rule: if your payment tops that, homes are officially unaffordable. Orange County Register reports that L.A.-Orange County blew past this limit, making it one of the worst markets in America.
Sales Collapse Signals Buyer Exodus
The housing crunch is forcing buyers out. Orange County Register found that just 85,300 homes sold in L.A.-Orange County during the year ended in April. That's 25% below the average annual pace since 2005 — a dramatic drop that shows how many people have given up trying to buy.
California's Inland Empire Offers Real Relief
Not all of California faces the same crisis. The Inland Empire — spanning Riverside and San Bernardino counties — ranked as the most affordable region in the entire nation, Orange County Register reported. Monthly mortgage payments there take only 28% of median household income, well under the affordability threshold.
Sentiment
NeutralNEGATIVENEUTRALPOSITIVE
Publishers
5
Articles
4
Reach
5
A
AnonymousAuthor
