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August 27, 2005
CALIFORNIANS SPEND HIGHER PROPORTION OF INCOME ON HOUSING
In California, more than 40 percent of households with mortgages spend more than 30 percent of their incomes on housing costs, a higher share than in any other state, according to a recent study by the Public Policy Institute of California. Titled "California's Newest Homeowners: Affording the Unaffordable", the report examines the state's latest trends in homeownership as well as the characteristics of homebuyers. In addition to higher loan-to-income ratios, many Californians have migrated to lower-cost inland areas.
Though the U.S. Dept. of Housing and Urban Development recommends that a household spend no more than 30 percent of its income on housing costs, approximately 50 percent of recent homebuyers in the Golden State exceed this threshold and 20 percent of recent homebuyers pay more than half of their income on housing costs, according to the study. Among the state's recent homeowners with low or moderate incomes, one-third spend more than 50 percent on housing. Full Report
Posted by QiRealtyEditor at August 27, 2005 07:19 PM