Debt reduction, saving money, and investing in assets like real estate that usually rise in value because of inflation are what we all need to focus on each day. Sadly, many Americans spend 100% of their income earned each month, partly since the cost-of-living here in America has never been higher.
Seventeen of the top 20 most unaffordable U.S. cities to buy a home are located in either the counties of Los Angeles, Orange, or San Diego in Southern California. The other three cities are in Northern California.
This data report compiled by Construction Coverage took a closer look at cities of all sizes, while focusing on the ratio of home prices to household income as the core basis for determining how affordable a region is these days.
The Top 3 most unaffordable cities in this study were as follows:
1. Newport Beach, CA: Median home price of $3.23 million; median household income of $127,353; and a home price-to-household income ratio of 25.4.
2. Palo Alto, CA: Median home price of $3.41 million; median household income of $179,707; and a home price-to-household income ratio of 19.
3. Glendale, CA: Median home price of $1.17 million; median household income of $77,483; and a home price-to-household income ratio of 15.2.
The Riverside County region is often promoted as an "affordable" housing region for people who live along the coast in Southern California. By comparison, a high percentage of Riverside and San Bernardino metropolitan region properties are much more affordable than homes found in Pacific Palisades, Santa Monica, Manhattan Beach, Long Beach, Huntington Beach, Newport Beach, Dana Point, and in La Jolla. However, the household income averages are generally lower in the Inland Empire region, so it's still not very affordable for many households.
The Riverside-San Bernardino-Ontario metropolitan area is ranked as the #1 most challenging place in America to save money with the Los Angeles-Long-Anaheim metropolitan region ranking second. The list of America’s hardest metropolitan regions areas to save money in is listed below:
1. Riverside-San Bernardino-Ontario
2. Los Angeles-Long Beach-Anaheim
3. Miami-Fort Lauderdale-Pompano Beach, FL
4. New York-Newark-Jersey City, NY-NJ-PA
5. Atlanta-Sandy Springs-Alpharetta, GA
The top ten most difficult states to save money were ranked as follows:
1. California
2. Hawaii
3. Nevada
4. Oregon
5. Maryland
6. Florida
7. New York
8. South Carolina
9. Colorado
10. Louisiana
Sources: Forbes Advisor and KTLA
* Usury (or excessive loan charge limits) laws don't seem to apply to credit card issuers with APRs reaching between 28% and almost 40% these days. By comparison, the interest rate ranges for a cash-out 1st or 2nd mortgage are just a small fraction.
* Unpaid credit card and overall consumer debt are at all-time record highs. All stages of credit card delinquency (30, 60, and 90+ days) rose during the fourth quarter of 2023, according to data shared by the Federal Reserve Bank of Philadelphia.
* "The National Association of REALTORS® reported that home prices continued to rise in the first quarter of 2024. National median prices rose 5.0% year over year to $389,400, while median home prices fell by 0.5% compared to the previous quarter. Of the 221 metro areas, 28.5% had double-digit year-over-year price increases in the first quarter of 2024." - NAR
* A homebuyer would need to earn $349,200 to buy the Orange County’s $1.37 million median-priced, existing single-family home in the first quarter of 2024, according to affordability stats from the California Association of Realtors. (Source: Orange County Register)
* Homeowners insurance has risen significantly over the past few years in states like Florida and California. Florida's average homeowners insurance is projected to reach almost $1,000 per month by the end of 2024, according to Insurify.
To learn more details, please click on the link below for my latest article:
Unaffordable Housing, Taxation, and Consumer Debt Trends
We hope to see you there on June 18th at the Canyon Lake Golf & Country Club's main restaurant at 9 am.
Rick Tobin
Realloans
NMLS 1934868
Realloans.com
So-Cal Real Estate Investors
