Industry News

California real estate buyers swallowed by income gap

Households fall short nearly $74K in amount needed to buy home

California households are nearly $74,000 short of the $127,950 qualifying income needed to purchase a median home in the state, according to the California Association of Realtors Homebuyer Income Gap Index report for the third quarter of 2005, released today. With a median household income of $54,140, California households are $73,810 short of the $127,950 qualifying income needed to purchase a median-priced home at $545,910 in California, C.A.R. said today. The Homebuyer Income Gap Index for California increased 33.7 percent during the third quarter of 2005 compared to 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 organization said. According to the report, potential home buyers in the Central Valley, with a median household income of $41,460, had the smallest income gap at $43,170, and needed a qualifying income of $84,630 to purchase a ...

Comments