Owning a Home in L.A. Is a "Pipe Dream" For Most
You can file this under Tell Us Something We Don't Already Know. But still, it's illuminating. We can't get enough news on how ridiculously expensive it is to live in Southern California.
Michael Locke / LA Weekly Flickr pool
Seriously. If you had moved to the Deep South you'd be rich by now. The latest data comes to us from real estate information company Trulia, which this week ranked L.A. as the third least-affordable housing market in the U.S. of A. You know who got second place?
Given that real estate investors are pooling their money and making all-cash offers on many properties so they can flip them, it seems nearly impossible for working-class and middle-class folks in Greater L.A. to get their house on.
According to Trulia, only one in four (24 percent) homes on the market is affordable to middle-income earners (those who have a median family income of $53,001).
That gave L.A. the third-place affordability ranking. San Francisco took first place, with 14 percent of its homes for sale being affordable to local middle-income earners.
New York came in fourth and San Diego came in fifth. We bet if Trulia considered SoCal as a whole, we'd beat them all.
The average price of a 1,170-square-foot home in the L.A. market, according to the site: $271,000. (That actually sounds like a steal if you can find a decent one at that price.)
Real estate market website Redfin released new data this week that shows that "L.A. home prices were up 23.4 percent" so far over last year's pricetags.
Trulia's chief economist, Jed Kolko, says that, for markets like ours, home ownership is "more of a pipe dream than the American Dream."
We have abundant medical marijuana dispensaries here. At least we know how to dream properly.