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Affordable Housing in California Now Routinely Tops $1 Million

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Affordable Housing in California Now Routinely Tops $1 Million per Apartment to BuildwordPublished 2 months ago on June 21, 2022By NewsArtist rendering shows a proposed affordable housing complex at Shaw and Glenn Ave. in Fresno. (Image: UPholding)
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More than half a dozen affordable housing projects in California are costing more than $1 million per apartment to build, a record-breaking sum that makes it harder to house the growing numbers of low-income Californians who need help paying rent, a review of state data has found.

The exorbitant price tags mean that taxpayers are subsidizing fewer apartments than they otherwise could while waiting lists of renters needing affordable housing continue to grow.

A key driver of the increases is labor and material prices, which have soared because of inflation, supply-chain problems and worker shortages during the COVID-19 pandemic. But numerous factors within the control of state and local governments also to blame for the high cost of building affordable housing in California.

Read more from the Los Angeles Times

#Silver lake #Los Feliz

SoCal Housing Market Cools with Slow Sales and Declining Prices

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SoCal Housing Market Cools with Slow Sales and Declining Prices
The number of homes sold since last June has dropped 21 percent as mortgage rates rise—but the effects aren’t felt in all counties
By Laurenz Busch -July 20, 2022
The California housing market has further cooled in June, dropping a remarkable 21 percent in units sold since the same time last year.

The market also saw an eight percent drop in units sold since May, when California’s median home price was pushed to a record-high of $900,170 according to the California Association of Realtors. June’s statewide median dropped four percent, to $863,790.

“Excluding the three-month pandemic lockdown period in 2020, June’s sales level was the lowest since April 2008,” the association’s Vice President and Chief Economist Jordan Levine said in its report. “With inflation remaining high and interest rates expected to climb further in the coming months, the market will normalize further in the second half of the year with softer sales and more moderate price growth.”

Levine added that sales can be expected to continue to slow in the coming months.

The fact that the housing market has been lethargic is not surprising, considering that mortgage rates increased. However, as the Los Angeles Times reports, the fact that the market saw a four percent decrease during peak season from May to June, is surprising—since 2010 was the last time that median home prices fell from May to June.

The C.A.R study uses a “seasonally adjusted annualized rate,” or the amount of homes expected to be sold in 2022 based on June’s numbers to assess the market. That number is currently 344,970, down roughly 30,000 units from May.

Across the state, fewer homes are being sold and home values are decreasing, but it’s not as drastic in all parts of the state. Although the market in SoCal slowed, it hasn’t affected all counties. Los Angeles and Ventura both saw increases in home prices since May, whereas Orange, Riverside, and San Diego saw drops—San Bernardino remained unchanged. Still, over the past year, the average home price is up 5.4 percent.

“At the regional level, home prices in all major California regions increased in price from last year, with the Central Coast leading the way at a 10.1 percent increase, followed by Central Valley (10.0 percent) and Southern California at 8.4 percent,” the report states.

Santa Barbara even saw home prices increase 38.9 percent since May, an anomaly only Del Norte County has even come close to at 25 percent.

Despite rising mortgage rates, the news could potentially benefit homebuyers who may have missed out on the highly competitive markets. As the Times reports, 29.6 percent of all homes on the market in the L.A. metro area had price cuts in June, which is more than double the 12.6 percent rate of June 2021 and higher than in dozens of other cities, including San Francisco, Boston, Detroit and St. Louis.

“California’s housing market continues to moderate from the frenzied levels seen in the past two years, which is creating favorable conditions for buyers who lost offers or sat out during the fiercely competitive market,” said C.A.R President Otto Catrina. “With interest rates moving sideways in recent weeks and fewer homes now selling above listing price, prospective buyers have the rare opportunity to see more listings coming onto the market and face less competition that could force them to engage in a bidding war.”

This is the salary you need to afford a home in California

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This is the salary you need to afford a home in California
By Alexa Mae AsperinPublished August 8, 2022Updated 8:47AMCaliforniaFOX 11

California’s real estate market continues to be extremely competitive
FOX 11’s Hailey Winslow was in Mission Viejo as the demand for homes remain extremely high across Orange County.

LOS ANGELES – It is cheap to live in California – said no one ever.

The Golden State is notorious for its exorbitant housing prices up and down the coast – from San Francisco down to San Diego – it isn’t a surprise to see houses for sale triple the amount than in other parts of the country.

Just how expensive is it?

Visual Capitalist used data from Home Sweet Home to analyze the salary one needs to earn in order to buy a home in America’s 50 biggest metros.

RELATED COVERAGE: This is how much money you need to make to be happy living in California, survey finds

According to the data, the median home price in the U.S. is around $370,000. That means the average person would need to earn around $76,000 to consider comfortably purchasing a home in the U.S.

But that does not apply to some states like California, where cities like Los Angeles, San Diego, San Jose, and San Francisco are the most expensive cities in the country.

The highest median home prices in the U.S. can be found in San Jose, where you’d need to earn around $337,000. The data revealed the monthly mortgage payment in San Jose for the median home is $7,718.

RELATED COVERAGE: Despite high rent, it’s still cheaper than buying a home – except in these cities

Here are the salaries needed to comfortably afford a home in California’s largest metros:

San Jose
Median Home Price: $1.88M
Salary Needed: $330.76K

San Francisco
Median Home Price: $1.38M
Salary Needed: $249.69K

San Diego
Median Home Price: $905K
Salary Needed: $166.83K

Los Angeles
Median Home Price: $792.5K
Salary Needed: $149.13K

Riverside/San Bernardino
Median Home Price: $560K
Salary Needed: $106.19K

Median Home Price: $545K
Salary Needed: $105.93K

You can see how other major cities like New York, Boston, and Seattle ranked by tapping or clicking here.

If you’re thinking that renting may be a cheaper option versus owning in California, think again.

The Out of Reach report from the National Low Income Housing Coalition revealed Californians are among those who have it the worst.

RELATED COVERAGE: This is how much money you need to make per hour to afford rent in California

According to the report, the average Californian needs to earn an hourly wage of $39.01 and work full-time to afford a two-bedroom apartment.

For more on that report, tap or click here.