Industry News

California’s real estate affordability worsens

Builders group blames state, local governments
Published on Dec 5, 2005

California's housing affordability crisis continued to worsen in the third quarter of 2005, according to a report released Thursday, prompting the California Building Industry Association to urge state and local officials to remove barriers to new-home production. The National Association of Home Builders/Wells Fargo Housing Opportunity Index, which analyzes affordability for 161 metro areas across the nation, found that – as usual – California's 24 metro areas were at the bottom of the list. The respected national survey of housing affordability, which analyzes what percentage of homes for sale in a metro area are affordable to households earning the local median income, found that 18 of the 20 least-affordable housing markets were located in California, including the bottom nine. In the state's most affordable metro area – Butte County – only 25 percent of area households could afford to buy the median-priced home. "Once again, it's been documented that Cali...

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