O.C. Housing Affordability Unchanged

Despite a slight improvement statewide in housing affordability during December, it remained unchanged in Orange County, where only about one in seven households could qualify for a conventional loan on a median-priced resale home.

That 15% rate for the county compares to a 48% national rate and a 21% statewide rate, the California Assn. of Realtors said Wednesday.

Even though per-capita and household incomes in Orange County are among the highest in the country, the even higher housing costs here meant that the county’s monthly housing affordability rate ranged between 13% and 16% throughout 1989--consistently one of the lowest in the nation, the association said.

In 1988, when housing prices in the county were considerably lower--although still among the country’s highest--the affordability rate averaged 20%.

For December, a prospective home buyer in Orange County needed a minimum annual household income of $81,034 to qualify to make the $2,026 monthly payment on a mortgage loan for the median-priced resale home, which sold for $248,664.

That was nearly 32% more than the $61,420 annual income needed to qualify for a home with the statewide median price of $188,477.

And the minimum Orange County income was more than 2 1/2 times the $30,144 necessary to get a conventional loan on a home with the national median price of $92,500.

In arriving at its affordability figures, the association calculates a 20% down payment and includes insurance and property taxes in the monthly payment. The survey does not include attached housing, which is generally less expensive--and thus more affordable.

AFFORDABILITY INDEX FOR EXISTING HOMES

Fifteen percent of Orange County households could afford to buy the median-priced resale home in the county in December, unchanged from 15% in November but down from 17% in December, 1988.

Median SELLING PRICE Dec. Nov. Dec. 1989 1989 1988 Orange County $248,664 $242,765 $232,116 United States 92,500 93,200 88,700 California 188,477 195,400 177,285 S.F. Bay Area 257,535 261,908 233,921 Los Angeles 216,314 224,625 192,134 San Diego 175,669 179,070 156,666 Riverside/ 125,488 127,974 113,864 San Bernardino

MONTHLY MORTGAGE PAYMENT Dec. Nov. Dec. 1989 1989 1988 Orange County $2,026 $2,001 $1,841 United States 754 768 703 California 1,536 1,610 1,406 S.F. Bay Area 2,098 2,159 1,855 Los Angeles 1,762 1,851 1,524 San Diego 1,431 1,476 1,242 Riverside/ 1,022 1,055 903 San Bernardino

MINIMUM PERCENT ANNUAL INCOME QUALIFIED Dec. Nov. Dec. Dec. Nov. Dec. 1989 1989 1988 1989 1989 1988 Orange County $81,034 $80,031 $73,622 15 15 17 United States 30,144 30,725 28,134 48 47 49 California 61,420 64,416 56,231 21 19 22 S.F. Bay Area 83,925 86,342 74,194 11 11 14 Los Angeles 70,492 74,051 60,941 16 14 20 San Diego 57,247 59,033 49,691 20 19 23 Riverside/ 40,894 42,189 36,115 32 30 36 San Bernardino