{"id":1476600,"date":"2024-07-11T00:20:00","date_gmt":"2024-07-11T04:20:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1476600"},"modified":"2024-07-11T00:20:00","modified_gmt":"2024-07-11T04:20:00","slug":"homes-in-californias-big-cities-cost-10-times-more-than-average-income","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/homes-in-californias-big-cities-cost-10-times-more-than-average-income\/1476600\/","title":{"rendered":"Homes In California’s Big Cities Cost 10 Times More Than Average Income"},"content":{"rendered":"

Homes In California’s Big Cities Cost 10 Times More Than Average Income<\/span><\/p>\n

\n

Authored by Jill McLaughlin via The Epoch Times,<\/em><\/a><\/p>\n

Buying a home in California slid further out of reach for many residents in 2023, especially in larger metropolitan areas, according to a recent Harvard University housing study<\/a>.<\/p>\n

<\/a><\/p>\n

The report found some of the highest disparity between wages and housing prices in Northern California.<\/strong><\/p>\n

According to the report released June 20, the Silicon Valley cities of San Jose, Sunnyvale, and Santa Clara had a median home sales price 11 times higher than the area\u2019s average annual wage of nearly $113,000 in 2023.<\/p>\n

Median home sales prices are determined by finding the midpoint of all sales, where half sold for more and half for less.<\/p>\n

The same was found at the coast in Santa Cruz and Watsonville, where 2023 housing prices were also 11 times higher than the average yearly wage of almost $68,000.<\/strong><\/p>\n

In Los Angeles County and Anaheim\u2014in Orange County\u2014the median home sales price was about 10 times more than the average wage of $98,200.<\/p>\n

Further south in San Diego and Carlsbad, housing reached nearly nine times more than the average wage of $76,000 last year.<\/p>\n

\u201cBoth homeowners and renters are struggling with high housing costs,\u201d<\/strong><\/em> the authors of the report, called \u201cThe State of the Nation\u2019s Housing 2024\u201d wrote in its summary.<\/p>\n

Millions of potential homebuyers across the U.S. have been priced out of the market by rising home prices and interest rates. The cost of owning a home is also increasing as insurance and property taxes continue to rise, according to the report.<\/p>\n

And single-family home construction is likely limited by ongoing development hurdles and high construction costs, among other restrictions.<\/p>\n

California has taken several steps in the past few years, though, to try to make owning a home easier.<\/strong><\/p>\n

<\/a><\/p>\n

San Francisco on Feb. 23, 2023. (John Fredricks\/The Epoch Times)<\/em><\/p>\n

State officials have relaxed permitting and environmental review requirements to make projects easier, quicker, and cheaper to build.<\/p>\n

The state also rezoned land owned by religious institutions and colleges in 2023 to enable affordable housing development, resulting in 171,000 new developable acres.<\/p>\n

California is also offering a new grant program that provides low-income earners with $40,000 in pre-construction costs, as well as down payments<\/a> in the amount of 20 percent\u2014up to $150,000\u2014for some first-time homebuyers.<\/strong><\/p>\n

Still, the country is facing sharp price increases for rent and housing that started during the COVID-19 pandemic, according to Dan McCue<\/a>, a senior research associate and one of the lead authors of the report.<\/p>\n

Prices for homes nationwide are up 46 percent, and rental prices have jumped 26 percent since 2022, Mr. McCue said in a press conference on the report June 20.<\/p>\n

\u201cNot only are prices high, but they\u2019re rising once again,\u201d<\/strong><\/em> he said. \u201cIt\u2019s really adding insult to injury.\u201d<\/strong><\/em><\/p>\n

<\/a><\/p>\n

High-rise buildings in downtown San Diego, Calif., on Oct. 4, 2023. (John Fredricks\/The Epoch Times)<\/em><\/p>\n

The number of houses on the market nationally is about 30 percent below those available before the pandemic, Mr. McCue added.<\/strong><\/p>\n

Part of the reason for the shortage can be attributed to homeowners who are staying put and not selling while interest rates remain around 7 percent, he said. The combination of high prices and high interest rates has driven housing inventory to its lowest point in 20 years, he said.<\/p>\n

Rental growth has also slowed because rents have remained high after the pandemic. Such is a problem for the record number of renters\u2014over 12 million nationally\u2014who pay more than half of their income on housing, which is most common among middle- and low-income earners, according to Mr. McCue.<\/p>\n

Rising home insurance costs, which have gone up about 35 percent, are also hurting low-income homeowners, according to the report.<\/p>\n

\u201cWe are also concerned that homeownership is increasingly out of reach for all but the highest income households,\u201d <\/strong><\/em>Mr. McCue said.<\/p>\n

\u201cAccess to homeownership has really been cut off in over half of the cities.\u201d<\/strong><\/em><\/p>\n

The demand for rentals and single-family homes, however, continues to grow, with 1.7 million more households in the U.S. in 2023, according to the report.<\/p>\n

Mr. McCue said he expects Gen Z, the generation that is now 12 to 27 years old, has added 8 million more households over the past four years.<\/p>\n

Immigration has also put pressure on available housing.<\/p>\n

\u201cIt\u2019s a big increase, and it\u2019s really propping up demand,\u201d<\/strong><\/em> he said.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 07\/10\/2024 – 20:20<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/personal-finance\/homes-californias-big-cities-cost-10-times-more-average-income<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Homes In California’s Big Cities Cost 10 Times More Than Average Income Authored by Jill McLaughlin via The Epoch Times, Buying a home in California…<\/p>\n","protected":false},"author":0,"featured_media":1476601,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1476600","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1476600","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1476600"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1476600\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1476601"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1476600"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1476600"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1476600"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}