Industry News

Housing costs drain income in Golden State

More lenders ease finance restrictions, report shows

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About two in 10 Californians who bought a home within the past two years spend more than half of their income on housing, while over half spend more than 30 percent of their income on housing, according to a study released this week by the Public Policy Institute of California, a nonprofit, nonpartisan research organization. In a report titled, "California's Newest Homeowners: Affording the Unaffordable," the institute explores how residents in the state are able to achieve home ownership given radical home-price increases. The home-ownership rate in California, at 59 percent, remains one of the lowest in the nation, the report states. Only New York, at 54 percent, and Hawaii, at 57 percent, have lower rates. The national average is about 70 percent. The rate of home ownership for householders ages 25-29 in California is about 25 percent, compared to about 40 percent for the nation as a whole, the report also states. Nationally, about 29.1 percent of homeowners spend more than 30 per...