Homeownership Remains Unaffordable For Many!!
Despite continued low interest rates and falling home prices, homeownership remains unaffordable for many everyday Americans, such as police officers, teachers, nurses, retail salespeople and janitors, according to a new study by the Center for Housing Policy. Paycheck to Paycheck: Wages and the Cost of Housing in America compares and ranks the costs of buying or renting a home in more than 208 U.S. metropolitan markets with salaries across a range of more than 60 occupations. In 93 percent of the markets studied, the income needed to purchase a median-priced home fell between 2008 and 2009. Yet, many workers still do not earn enough to own a home. Stricter lending practices and traditionally low salaries for these workers make it more difficult for them to qualify for a mortgage loan.
Of the 208 markets studied, retail salespeople cannot afford to purchase a home in 207 of those markets. Janitors were priced out of 202 markets, nurses 146, police officers 86 and school teachers 83. However, low interest rates and falling home prices have made homeownership more affordable for police officers in 37 areas that were previously unaffordable, followed by school teachers in 33 and nurses in 26.
San Francisco had the highest median home prices, followed by San Jose, Calif., Honolulu, Santa Ana, Calif., and Santa Cruz, Calif. Markets with the steepest drops in income needed to purchase a home include Atlantic City, N.J., and the Florida cities of Ocala, Fort Lauderdale, Port St. Lucie and Cape Coral. Mon, Mar 29, 2010.
Do you think the Real Estate Market has Stabilized yet?
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2007 President, Orange County Association of Realtors (949) 753-7900