Housing Costs More Affordable, for Now

For years Orange County held the distinction of being one of the least affordable places to live in America. Skyrocketing costs pushed companies out and kept others from relocating operations here.

Now rising professional wages are making Orange County more affordable to relocating executives. The county, which ranked as the fifth most expensive place to live in 1991, has now fallen to lowly 26th. Most of the credit goes to new jobs in the technology industry, which have helped push the median income here up, according to a study released by E&Y; Kenneth Leventhal.

Now the median 2,200-square-foot four-bedroom home costs only 23.3% of family median income, compared to 25.2% last year. Luxury apartments also took less of a family’s pay, dipping to 24.9% of median income from 29.1% last year.

“For the past two years our housing costs have been more in the middle of the road compared to other urban areas nationally,” said Michael Meyer, managing partner of E&Y; Kenneth Leventhal’s Newport Beach office.

But don’t expect the county to remain this affordable for long. A decreasing supply of land is driving up prices for new for-sale and rental housing. And an increasing number of jobs means a bigger demand for the limited inventory of resale homes on the market, which will begin to drive up prices.

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Melinda Fulmer covers real estate for The Times. She can be reached at (714) 966-7832 and at melinda.fulmer@latimes.com