Californians don't earn enough to afford to buy
The California Association of Realtors® (C.A.R.) has released their Homebuyer Income Gap Index™ (HIGI) report for the third quarter of 2005. This new study shows that "California households, with a median household income of $54,140, are $73,810 short of the $127,950 qualifying income needed to purchase a median-priced home at $545,910 in California".
And, this gap is widening. "The Homebuyer Income Gap Index™ for California increased 33.7 percent during the third quarter of 2005 compared with the third quarter of 2004, when the gap stood at $55,220, the median household income was $52,940, and qualifying income needed to purchase a median-priced home at $461,850 was $108,150."
The widest gap in the state of California is in the San Francisco Bay area.
To read more: Californians gap between income and home buying third quarter