O.C. Home Affordabilty 9th Worst in Nation

February 23rd, 2009, 5:56 pm
by Jon Lansner/ocregister.com

An Orange County home was four times as affordable in 2008's fourth quarter as it was a year earlier — as measured by an index of the National Association of Home Builders and Wells Fargo Bank.

Still, O.C.'s "affordability" was 9th worst among 222 big U.S. communities tracked by NAHB/Wells. (We were 11th worst in the third quarter!)

Details on O.C. stats from NAHB/Wells:

Just 33.5% of the homes sold in O.C. in the fourth quarter were affordable to the typical local household. (A year ago, 8.4% of the homes were "affordable.")

A 27% price drop in O.C. homes in the past year clearly drove increased local affordability.

So did a 7% increase in local incomes, according to NAHB/Wells math.
Nationally, 62.4% of U.S. homes selling were "affordable" as 2008 ended. New York City metro area was least affordable at 14%; Indianapolis was best at 93%.

Full Article HERE