From California Post · · 1m 20s
LA Ranked Worst for Home Affordability
Los Angeles earns an F on national housing report card.
In brief
Los Angeles earns an F on national housing report card. Los Angeles has the lowest home affordability score in the U.S. with a typical home costing $1.1 million while median household income is $91,380. Originally reported by California Post.
LA Ranked Dead Last
Los Angeles was ranked dead last among America’s 100 largest metropolitan areas for home affordability and homebuilding, earning an embarrassing "F" on Realtor.com’s national housing report card.
Typical Home Costs $1.1m
The typical Los Angeles-area home is listed for $1,129,415, while the median household earns just $91,380 a year.
Mortgage Payment Too High
For a median earner trying to buy that typical home with a 10% down payment and a 6.5% 30-year mortgage, the monthly payment would consume 84.4% of their income.
68% Down Payment Needed
To drag the mortgage payment down to that threshold, a buyer would need a staggering 68% down payment, about $768,000.
LA Homebuilding Score Low
Los Angeles-Long Beach finished with an overall score of just 12 out of 100, the lowest in America, including a microscopic 0.9 affordability component score and a homebuilding score of 23.1.
LA Not Building Enough Homes
The region posted a permit-to-population ratio of just 0.47, meaning it is permitting fewer than half as many homes per resident as the national average.
What to remember
Los Angeles has the lowest home affordability score in the U.S. with a typical home costing $1.1 million while median household income is $91,380.
