Californians spend more of their income on housing

California communities are making a lot of lists these days, and it is not a good thing.

Inman News posted this item on an Associated Press report out that came out yesterday.

"An analysis of census data by the Joint Center for Housing Studies at Harvard University found that of the top 13 metro areas where the most mortgage holders spend more than 30% of their income on housing, nearly all were in California and Florida -- only one was in Las Vegas."

Say it ain't so. Here's the ranking:

Greatest share of mortgage holders spending 30%-plus on housing

1. Miami-Fort Lauderdale-Miami Beach, 58%
2. Stockton, Calif., 57%
3. Riverside-San Bernardino-Ontario, Calif., 55%
4. Cape Coral-Fort Myers, Fla., 55%
5. Los Angeles-Long Beach-Santa Ana, Calif., 54%
6. Modesto, Calif., 54%
7. San Diego-Carlsbad-San Marcos, Calif., 53%
8. San Francisco-Oakland-Fremont, Calif., 53%
9. Sarasota-Bradenton-Venice, Fla., 52%
10. Oxnard-Thousand Oaks-Ventura, Calif., 52%
11. San Jose-Sunnyvale-Santa Clara, Calif., 51%
12. Las Vegas-Paradise, Nev., 51%
13. Sacramento-Arden-Arcade-Roseville, Calif., 50%"

--Lauren Beale

Thoughts? Comments?

Photo: Co-owner Donald S. Higdon, with manager Ellen T. Lindsey, at their bank in Tightwad, Mo. The novel name might have been a good philosophy for other lending institutions to follow. Credit: Peter Slevin / Washington Post

Comments

[amir]

I like California, but salaries don't justify the cost of housing here.

[Cal]

Spending a high percentage of income on housing is just a guaranteed way to be poor for the rest of your life. So many are doing it while underwater in the home and it continuing to depreciate, what was said about a fool and their money?

[The Original RZ]

And maybe if folks didn't buy houses that were too expensive, prices would have come down years ago...

[David]

Californians have historically "bet" that their rising home prices would pay for their retirements, so they didn't "have" to save, the house did it for them, so why not spend more on housing?

That's not going to work in the future. Period. There are a lot of nice(r) areas in the USA that are a heck of a lot cheaper, lower tax, and better run.

[Just Call Me Maria]

Did I just hear an overwhelming "DUH!!!"

[can't wait]

Having folks spend 30% on more on housing isn't sustainable. Prices will have to come down to meet affordability. Am I the first person to say that on here? :) Can't wait.

[TH]

This is last year's data and news. In 2008, a very large number of California homeowners wised up and stopped paying all together. Some day, the banks will work through the backlog of foreclosures, but for now, a significant number of California homeowners pay 0%.

[It All Happens on the Margin]

Is this gross income or net income as a percentage?

[Scott]

What a rip. There are many better places to live then California at less then half the cost for RE. I do not get it,, why do you people stay. In one week with a Uhaul you could live happily ever after.

[RB]

A better story would be what year was the last before Californians were paying LESS THAN 30% of their income. in other words, Californians have been being "over-paying" for their homes and mortgages more years than I can remember. you would probably have to go back to 1990 or earlier (and maybe MUCH earlier).

[Eastsiiiide]

I love (Southern) California and gladly pay a premium to live here. No better weather anywhere in the US, activities for just about anything you are interested in, desirable job opportunities and one of the main centers of culture for the rest of the world. Hate all you want, but there is a reason why people from all over the world vacation and want to live in California. Even, Iranian president Mahmoud Ahmadinejad on his trip to the US this week, said he would like to visit Los Angeles. Personally, I feel blessed to be able to live in a place like that.

[Nancy]

"I love (Southern) California and gladly pay a premium to live here."

Me too! Actually, I'm trying to decide what I will do with the tiny remainder of my paycheck: gas or food? Hmmmmmm.

[Todd]

I agree with David that Californians have historically bet that their rising home prices would pay for their retirements, which is why they don't save--and the government has been the Pied Piper luring the children away into a cave, never to be seen again.

[Nelcisco]

Eastsiiide: So because LA is not affordable and people express concern means they hate? You're right, LA is desirable when you have $. The president of Iran and a few of the rich are not going to buy up all of LA.

Paying a premium is one thing, but when the ghetto thats gang infested like Compton goes for a premium, go figure, I know you would'nt want to pay a premium for that.

[the problemwithcaring]

Even, Iranian president Mahmoud Ahmadinejad on his trip to the US this week, said he would like to visit Los Angeles.

Posted by: Eastsiiiide |

First stop, Museum of Tolerance....

[ComptonJack]

I bought a home in Compton for 400K in 2006 and only use 30% of my income. But I hate to think what would happen if my 6 brothers,whom are married with children, along with my mother, dad and gradma move out and leave the mortgage all to myself. I guess I will have to turn their bedrooms back into a garage and kitchen.

[David]

Well, Scott, people have been leaving California in droves. A net of about 3M US citizens have left California in the past 15 years. The only reason the population is growing is illegal immigration.

RB: The last time Californians were paying 30% of their income on (bought) housing was 1996-1998. Before that, 1978.

[Miami Meltdown]

Here in Miami the prices have plummeted. (i.e. a house priced at 650K in 2005 that I offered 450K for and the realtor told me "we aren't going to dignify the offer with a counter offer." I just purchased for 165K,) The problems are taxes and insurance. Taxes will go down next year and insurance seems to be stabilizing. However, you can almost bet that your T & I on a house here will be more than your P & I.

[lynn]

Gee... when my parents bought their home in Orange County in the early 70s, the $300/month mortgage nearly killed them. While it wasn't 30% of their income, it still seemed like a lot. In the early 90s, before they paid off the house, the $300 monthly payment was laughable. The same will hold true 20 years from now with my husband's and my mortgage. Suck it up and please quit whining!