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Housing Facts
Nine out of the 10 least affordable communities in the nation are in California. The state has 26 markets of the bottom 32 for affordability.
The median price of an entry-level home in California has soared above $500,000 during the second quarter of 2007. It takes an income of more than $100,000-close to twice the state median-to afford such a home.
Only 16% of Californians could afford to buy a median-priced home in June 2005. That was down 2% since June 2004. Nationally, 48% of the population could afford a median-priced home that same month.
In 2000, California's homeownership rate is the third worst in the nation behind New York and Hawaii at 59.6%. It is 10 percentage points below the national average.
For every $1,000 added to the cost of a home in government fees, 217,000 prospective buyers are priced out of eligibility. For every $1,000 added to the cost of a mortgage, $2,160 is paid over the life of a 6% interest, 30-year loan.
In Livermore, California, government fees add more than $118,000 to the cost of a new home. That equals an additional $707 every month on the mortgage of a 6% interest loan. After 30 years, that homeowner has paid $254,520 for those fees.
The California Department of Finance estimates that the state needs to produce 250,000 new homes, condos and apartments per year to meet the demand of our growing population.
Half of California's annual population growth is concentrated in the six-county region surrounding Los Angeles.
The production of townhomes and condos – California's most affordable market – plummeted between 1994 and 1999 from 18,691 units a year to 2,945, an 84% drop.
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