Friday, February 24, 2006

Welcome to Unaffordability, NJ!

The National Association of Homebuilders (NAHB) & Wells Fargo released their year end 2005 affordability study.

Indianapolis Recaptures Title Of Most-Affordable Major Housing Market At Year-End 2005

At the bottom of the affordability scale was Los Angeles-Long Beach-Glendale, Calif., where just 2.3 percent of homes sold in the fourth quarter were affordable to families earning the area’s median household income of $54,500. The median price of all homes sold in that area was an even $500,000. And as usual, the bottom of the affordability scale was dominated by large California cities, including Santa Ana-Anaheim-Irvine, San Diego-Carlsbad-San Marcos, and Stockton. New York-White Plains-Wayne, N.Y.-N.J. rounded out the list of the five least-affordable major housing markets.

The complete list by affordability rank (in Excel format) can be found here.

Caveat Emptor!


Anonymous gary said...

Inventory build up, bubble or no bubble, inflation, population growth or lack thereof..... all this talk doesn't mean a thing to me as long as I still see prices in the stratosphere. When I see every fourth house for sale and more slashing than Friday the 13th, part XXII, then I'll say the market has turned.

2/24/2006 09:58:00 AM  
Anonymous Anonymous said...

"When I see every fourth house for sale and more slashing than Friday the 13th, part XXII, then I'll say the market has turned."

We looked at a very old house last week, and it had the creepiest basement. Lying on the floor of the dark basement (the semi-working flourescent lights were at about 5% brightness) was a huge ax, a chainsaw, and weird holes in the foundation, like somone had buried something.

That was like living Friday the 13th!

We got the hell out of there!

2/24/2006 11:22:00 AM  
Anonymous Gary said...


The price alone should make you shreik!!

2/24/2006 11:42:00 AM  
Anonymous Anonymous said...

An interesting home affordability calculator:

According to that, if you earn $200K a year, and have $120,000 in cash for a downpayment, and zero debt, you can afford a $750K house with $10K annual property taxes.

How many people buying $750K homes do you think earn $200K a year, 5%?

2/24/2006 04:16:00 PM  
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