Affordability Orange County's Housing Problem
We are in the weak the weakest recovery since the Great Depression. Part of that is the fact that under employment and unemployment is a serious problem that is not being committed to by the government. With many of the folks down in income more than 3/4 of their incomes or out of business the small business owners are severely hurt. The salaried folks are also hurt.
So with that much of a down turn of incomes (3/4 of the origional) how do you afford a home that has only dropped 40 percent. It just does not happen. Even though the national affordability is at a record high we do not see that in Orange County, CA.
The NAHB/Wells Fargo metric index has Orange County home affordability improving. Yet still suffers from one of the lowest affordability levels in the country, ranking 222 out of 225. Just ahead of the most expensive metro areas of the US: San Francisco, Honolulu and New York. Remember our median housing price fell below $400,000. Most of those are much higher.
If we do not stop hurting the business climate in this State and in the Nation we are going to continue to see further drops in the housing market.