State Affordability Index Down in May

Single-family homes in California became less affordable yet again in May, when the state’s housing affordability index tumbled to 29%, down 8 percentage points from the same period a year ago, according to the California Assn. of Realtors. Southern California’s affordability index also fell to 36%, down 3 points from May 1999. Only 25% of Orange County’s residents could afford a median-priced home--$322,080--in May, down 11 percentage points from a year ago. “This strong price appreciation is really tied to lack of supply,” said Leslie Appleton-Young, vice president and chief economist for CAR. Monterey was the least affordable area, where only 13% were able to afford a median-priced home. The high desert remained the most affordable part of the state, where 73% could afford a median-priced home in May. In Los Angeles County in May, the price of a median-priced home was $208,710.