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| C.A.R. Survey Reveals California Households Fall $55,370 Short in Income Needed to Purchase Home |
Income Gap in San Francisco Bay Area at $82,910
LOS ANGELES, Dec. 2 /PRNewswire/ -- California households, with a median
household income of $52,940, are $55,370 short of the $108,310 qualifying
income needed to purchase a median-priced home at $462,510 in California,
according to the California Association of REALTORS(R) (C.A.R.) Homebuyer
Income Gap Index(TM) (HIGI) report for the third quarter of 2004, released
today.
The association's Homebuyer Income Gap Index(TM) is a quarterly analysis
of the difference between the median household income and the qualifying
income needed to purchase a median-priced, single-family home for the state
and for select regions within the state.
The Homebuyer Income Gap Index(TM) for California increased 47.9 percent
during the third quarter of 2004 compared to the third quarter of 2003, when
the gap stood at $37,440, the median household income was $51,630, and
qualifying income needed to purchase a median-priced home at $385,720 was
$89,070.
According to the report, potential homebuyers in the Central Valley, with
a median household income of $40,640, had the smallest income gap at $27,030,
and needed qualifying income of $67,670 to purchase a median-priced home at
$288,960.
The San Francisco Bay Area had the highest gap in the state at $82,910,
where potential homebuyers had a median household income of $68,430 but needed
qualifying income of $151,340 to purchase a median-priced home at $646,280.
The California Association of REALTORS(R) (http://www.car.org) is one of
the largest state trade organizations in the United States, with more than
155,000 members dedicated to the advancement of professionalism in real
estate. C.A.R. is headquartered in Los Angeles.
Homebuyer Income Gap Index(TM)
% % Y-to-Y Y-to-Y
Change Change $ %
From PITI From Qualifying Income Change Change
Prior Payment Prior Income Gap Income Income
Year Year Gap Gap
2.5% $2,708 21.6% $108,305 ($55,370) $17,930 47.9%
2.5% $2,166 27.1% $86,628 ($33,693) $17,153 103.7%
2.3% $1,692 26.6% $67,665 ($27,026) $13,298 96.9%
-0.1% $3,783 15.6% $151,338 ($82,910) $20,466 32.8%
22.3% $2,683 24.9% $107,338 ($55,825) $12,027 27.5%
SOURCE California Association of REALTORS
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CONTACT:
Mark Giberson of California Association of
REALTORS, +1-213-739-8304, markg@car.org
