Only 32 percent of California households could afford to purchase the $496,620 median-priced Golden State home in the first quarter of 2017, according to a report issued Monday by the Los Angeles-based California Association of Realtors.
A recent count found a dramatic 104% increase in “tents and hand-built structures” located downtown, for a total of 418, compared to 2016. Driving through East Village, a gentrifying neighborhood on the edge of downtown, it’s tough to find a street that doesn’t have a tarp or tent – or dozens. People with neither tent nor tarp fashion makeshift shelters out of shopping carts, storage bins and blankets.
“With parents working two or more jobs to afford housing, they may lack the time to help children with homework or afford after-school enrichment, affecting educational achievement.” If the housing crisis continues, the report predicts, the result will be “a persistent and growing underclass,” while higher-income residents bear the burden of supporting a swelling elderly population.
Thirty-two percent of California households could afford to purchase the $496,620 median-priced home in the first quarter of 2017, up from 31 percent in fourth-quarter 2016 but down from 34 percent in first-quarter 2016.
A minimum annual income of $102,050 was needed to make monthly payments of $2,550, including principal, interest, and taxes on a 30-year fixed-rate mortgage at a 4.36 percent interest rate.
Forty percent of home buyers were able to purchase the $414,940 median-priced condo or townhome. An annual income of $85,270 was required to make a monthly payment of $2,130.
More than 130 housing bills surfaced this year as of the last count, many of them aimed at addressing the state’s housing shortage, lack of affordable housing and protecting those at risk of losing their homes.