According to the National Association of Home Builders latest report, the home affordability rate is currently at 48.1% for San Diego County.
What does this mean? Home values are slowly increasing and we may be past the peak of affordability which appears to have peaked at 58.8% during the 1st quarter of 2008.
The NAHB housing opportunity index represents the percentage of homes sold that a median income household could afford using standard lender underwriting guidelines. A few years ago we never had to worry about this because anyone who could fog up a mirror could get a loan.
San Diego County has always been an expensive place to live and these numbers are nothing new but look at the chart below to see how much more affordable it is to live in many other parts of the country. You have to ask yourself, do I want to give up Sunny San Diego to live somewhere I could afford a home? Perhaps……..
See Wichita, KS on that list? Our field agent, Cory has a lot of family there and visits regularly but I think he prefers Sunny San Diego over Wichita.
MOST AFFORDABLE – Kokomo, IN is the most affordable place to live in the United States, 98% of all homes sold there are affordable to the medium household income. WOW, when you think about that it would be really nice if San Diego was a little higher on that list. No offense to anyone reading this from Kokomo In, but I have never been there or even heard of your nice affordable city. 🙂
LEAST AFFORDABLE – New York-White Plains-Wayne, NY-NJ is the least affordable. Only 19.7% of all homes sold there are affordable to the medium household income. WOW, now when you think about that it gets a bit scary. It’s nice San Diego is no where close to that.
DATA SOURCE, National Association of Home Builders