Los Angeles was just ranked the least affordable real estate market in the U.S. by Forbes Magazine. And, of course, San Francisco came in second place.
> Here’s the article from Forbes…
Forget coffee when it’s time to sober up. Instead, check out the real estate listings in New York or Los Angeles. There, buyers pay $1 million for a property that might fetch half that elsewhere. The disparity illustrates how affordability has been spiraling out of control in places on the East and West coasts.
For example, in the first quarter of 2001, 42.3% of homes sold in Los Angeles were available to the median earning household. But in the first quarter of 2007, only 3% of homes sold there were affordable to those households earning the median income. This is based on data from the National Association of Home Builders (NAHB) and Wells Fargo that assumes a 10% down payment, a 6.1% mortgage, and tax and insurance costs calculated by the Federal Housing Finance Board.
Given those numbers, it’s no surprise that Los Angeles tops our list of the nation’s least affordable real estate markets. Read More >>