Saturday, November 13, 2004

Housing blues

Housing blues

Still going ... rising prices continue


Published 2:15 am PST Saturday, November 13, 2004

Every time you turn around, California is getting less affordable for ordinary folk.

In September, you had to have a minimum household income of $107,880 to buy the median-priced home in California, according to the latest report of the California Association of Realtors. Fewer than 20 percent of Californians have that kind of income.

And that's assuming you pay a 20 percent down payment. The price of the house, by the way, is $465,540 - staggeringly higher than elsewhere in the United States.

Nationally, you'd need a household income of $43,240 to buy a median-priced home. The price of that house is $186,600.

People once worried that California's housing bubble would burst - as it did in the early and mid-1990s. But today, we have to worry equally about the housing bubble not bursting.

Huge disparities between what people earn in a job and what they have to pay to buy a home are unsustainable. Something's got to give.

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