Housing Affordability
Definition
When analyzing housing affordability, it is relevant to look at both the purchase price for a single-family home and the current costs of renting in terms of median family income. The California Association of Realtors Housing Affordability Index (HAI) measures the percentage of households that can afford to purchase the median priced home in the state and regions of California based on traditional assumptions. For apartment rentals, this indicator set estimates the amount a household will be deficient per month at current rental prices and the current estimated median family income, assuming that 30% of monthly income is allocated to rent.
Significance
This metric is an important indicator of household resiliency in case of job loss or natural disaster.
Trends
The median price of a single-family home for Q3 2019 data is $667,500. According to the California Association of Realtors Housing Affordability Index, 30% of households in Ventura County can afford the median-priced home. The minimum income required to qualify for a median-priced home is $130,800, and the monthly mortgage including taxes and insurance would be $3,270.
The amount deficient per month to afford a mortgage on a single-family home at median household income: -$1199
The Q2 2019 average cost for a 2-bedroom apartment is $2,131.
The amount deficient per month to afford a 2-bedroom apartment rental at median household income: -$60
