State Falls Short in Affordable Housing

While mortgage interest rates are still relatively low, housing affordability is apparently not getting any better in California, according to Housing Opportunity Index figures released by the National Assn. of Home Builders. The index is a quarterly measure of the percentage of homes sold that a family earning the area’s median income can afford to buy.

In the first quarter of 1999, 13 of the 25 least-affordable markets nationwide were in the state, with San Francisco topping the list. In the fourth quarter of last year, 11 California cities made the top 25.

The California markets among the 25 least-affordable metro areas and their ranking nationwide were:

San Francisco, 1; Santa Cruz-Watsonville, 2; Santa Rosa, 4; San Jose, 6; Salinas, 7; San Luis Obispo, 9; San Diego, 10; Oakland, 12; Santa Barbara, 15; Los Angeles, 16; Orange County, 18; Ventura, 19, and Stockton, 22.