The Evaporating Dream: Homeownership in California

THE EVAPORATING
DREAM:
HOMEOWNERSHIP
IN CALIFORNIA
April 23,2015
Mid-Year Luncheon
Joel Singer, Chief Executive Officer
OVERVIEW
The Good News
Our Challenge
Affordability Gap
Homeownership Gap
Housing Production Gap
Solving California Housing Problem
What Kind of State Will CA be?
TODAYS CALIFORNIA HOUSING

MARKET
Strengthening (even if underperforming)
2015 Q1 HOME SALES UP SLIGHTLY

California, Mar. 2015 Sales: 391,680 Units, +2.3%YTD, +7.3%YTY
700,000
600,000
Mar-14: Mar-15:
365,120 391,680
500,000
400,000
300,000
200,000
100,000
SERIES: Sales of Existing Single Family Homes

SOURCE: CALIFORNIA ASSOCIATION OF REALTORS
*Sales are seasonally adjusted and annualized
Jan-15
Jul-14
Jan-14
Jul-13
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jul-08
Jan-08
Jul-07
Jan-07
Jul-06
Jan-06
Jul-05
Jan-05
MEDIAN HOME PRICE CONTINUES TO CLIMB

California, Mar. 2015: $468,550, +9.2% MTM, +7.2%YTY
P: May-07
$594,530
$700,000
$600,000
Mar-14:
$437,100
$500,000
Mar-15:
$468,550
T: Feb-09
$245,230
-59% from
peak
$400,000
$300,000
$200,000
$100,000
SERIES: Median Price of Existing Single Family Homes

Jan-15
Jul-14
Jan-14
Jul-13
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jul-08
Jan-08
Jul-07
Jan-07
Jul-06
Jan-06
Jul-05
Jan-05
$-
SALES LOOKING POSITIVE SO FAR FOR 15

Year-over-Year % Chg
6 per. Mov. Avg. (Year-over-Year % Chg)
15%
10%
5%
0%
-5%
-10%
-15%
-20%
SERIES: Sales of Existing Single Family Homes, Seasonally Adjusted

Jan-15
Oct-14
Jul-14
Apr-14
Jan-14
Oct-13
Jul-13
Apr-13
Jan-13
Oct-12
Jul-12
Apr-12
Jan-12
Oct-11
Jul-11
Apr-11
Jan-11
Oct-10
Jul-10
Apr-10
Jan-10
-25%
INVENTORY REMAINS VERY TIGHT

Mar 2014: 4.0 Months; Mar 2015: 3.8 Months
18
16
14
12
10
8
6
4
Note: Unsold Inventory Index represents the number of months it would take to sell the remaining inventory for the month in question. The
remaining inventory for the month is defined as the number of properties that were Active, Pending, and Contingent (when available) and
divide the sum by the number of Sold properties for the month in question.
SERIES: Unsold Inventory Index of Existing Single Family Homes

Jan-15
Jul-14
Jan-14
Jul-13
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-
Jul-08
Jan-
Jul-07
Jan-07
Jul-06
Jul-05
Jan-05
Jan-
2015 - WHERE ARE WE TODAY?

Housing market is under-preforming given
fundamentals
Low mortgage rates
Job & Income growth are back
And yet
Sales off 7.6% in 2014 compared to 2013
Share of first-time buyers LOW
Affordability key concern for renters
INVENTORY DROPPED SIGNIFICANTLY

IN THE BAY AREA SINCE 2009
BUT REMAINED TIGHT
9.0
Bay Area
Central Valley
So CA
8.0
7.0
6.0
5.0
4.1
4.0
3.7
3.0
2.4
2.0
1.0
0.0
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Jan-15
Note: Unsold Inventory Index represents the number of months it would take to sell the remaining inventory for the month in question. The
remaining inventory for the month is defined as the number of properties that were Active, Pending, and Contingent (when available) and
divide the sum by the number of Sold properties for the month in question.
SERIES: Unsold Inventory Index of Existing Single Family Homes

WHERE IS THE INVENTORY?

Investors renting instead of flipping
Mortgage Lock-In Effect
Where will I go?
Foreclosure pipeline is dry
New construction recovering but LOW
Off-market (aka pocket) listings not being
counted in listing stats
OUR CHALLENGE:
HOW TO RE-ESTABLISH HOUSING
AFFORDABILITY AND
HOMEOWNERSHIP
(When Government Policy Fails)
WHERE ARE WE HEADED?
By 2025, California will have a middle class of

renters.
John Husing, Ph.D Economics
INADEQUATE HOUSING SUPPLY

ISSUE
Housing supply constrained in long-run

New construction recovery is very slow
Missing 165,000+ new units per year
Production has fallen short of housing needs
Inhibited by
Fiscal interests of local government
Residents who disdain further development, especially
multi-family
Unfavorable legal/business environment for
development in general & multi-family in particular
CALIFORNIAS 3 HOUSING GAPS

Housing Gaps:
Housing affordability gap
Homeownership gap
Housing production gap
Chronic problems spanning decades, but

they are coming back home to roost
AFFORDABILITY GAP
HOUSING AFFORDABILITY DOWN

SHARPLY SINCE Q1 2012
California vs. U.S. 1984-2014
% OF HOUSEHOLDS THAT CAN BUY
A MEDIAN-PRICED HOME
80%
CA
70%
60%
50%
40%
30%
20%
10%
0%
SERIES: Housing Affordability Index of Traditional Buyers

US
Annual
Quarterly
INCOME REQUIRED TO BUY A MEDIAN-PRICED

HOME IN CA: (PEAK VS. CURRENT)
$100,000
$91,552
$80,000
$60,000
Change in minimum required income:

$35,228
Increase in income attributed to
interest rate increase:
$338 (1.0% of total change)
$56,324
$40,000
Increase in income attributed to price

increase :
$34,890 (99.0% of total change)
$20,000
$0
2012 Q1
2014 Q4
SERIES: Housing Affordability Index

HOUSING AFFORDABILITY IN CA: BY COUNTY

HAI
70
60
50
40
% able to purchase median priced home

2014 Q4
64
59 57
56 56
53 53
50 49
45
41
30
20
10
0

31 29
29 28 27 27
26 24
23 22 21
21 20
17 15 15
14
VERY SLOW REAL INCOME GROWTH
In 2013 Dollars
$70,000.00
U.S.
CA
2013 gap = $5600
$60,000.00
$50,000.00
$40,000.00
$30,000.00
$20,000.00
$10,000.00
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
$0.00
SERIES: Median Household Income

SOURCE: US Census Bureau, Current Population Survey
CALIFORNIAS MAJOR METROS ARE LESS

AFFORDABLE THAN THE AVERAGE U.S. METRO
SOURCE: Legislative Analysts Office
RIVERSIDE AND SACRAMENTO ARE STILL BELOW THE AVERAGE

SHARES OF INCOME DEVOTED TO MORTGAGE PAYMENTS
Source: Zillow
STATES LOW-INCOME HHS SPEND MUCH MORE!
SLOW WAGE GROWTH A CONCERN
HOW WAGES MEASURED AGAINST INCOME

REQUIRED TO BUY A HOME (2014)
California
$120,000
Annual Mean Wage
$119,970
$100,000
$98,400
$87,520
$80,000
$69,990
$60,000
$40,000
$20,000
$0
$89,250
$91,552
$71,630
$45,340
$27,010
Retail
Chefs and Elementary
Salespersons Head Cooks
School
Teachers
SOURCE: Bureau of Labor Statistics, C.A.R.
Firefighters
Police and
Computer
Registered
Software
Min. Inc
Sherriff's Programmers
Nurses
Developers Required to
Patrol
(Applications) Buy a Med.
Officers
Home

REQUIRED TO BUY A HOME
Los Angeles
$120,000
Annual Mean Wage
$100,000
$103,790
$80,000
$82,830
$40,000
$0
$91,297
$72,720
$60,000
$20,000
$86,840
$93,180
$42,610
$44,330
$26,870
Retail
Auto.
Salespersons Mechanics

Head Cooks
School
Teachers
Firefighters
Computer
Registered
Programmers
Nurses
Software
Min. Inc
Home
MORTGAGE AND RENT PAYMENTS ABOVE

HISTORIC SHARES OF INCOME IN LOS ANGELES
Source: Zillow

San Francisco
$200,000
$180,000
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
Annual Mean Wage
$194,870
$124,980
$88,390
$118,690
$97,570
$70,680
$52,690
$49,230
$30,340
Retail
Auto.

Head Cooks
School
Teachers
Firefighters
Computer
Registered
Programmers
Nurses
Software
Min. Inc
Home
AND IN SAN FRANCISCO
Source: Zillow

Sacramento
$120,000
Annual Mean Wage
$100,000
$105,390 $103,730
$80,000
$75,980
$60,000
$67,300
$58,520
$40,000
$20,000
$0
$46,790
$54,400
$50,730
$26,610
Retail
Auto.

Head Cooks
School
Teachers
Firefighters
Computer
Registered
Programmers
Nurses
Software
Min. Inc
Home
MEDIAN MONTHLY MORTGAGE PAYMENT - CA

What Will Happen When Mortgage Rates Increase?
MONTHLY MORTGAGE
$2,400
$2,000
$1,525
Q4-2014 Median Price $452,140

20% Downpayment
$1,624
$1,727
$1,833
$1,942
$2,054
$2,169
$2,286
$1,600
$1,200
$800
$400
$0
3.0%
3.5%
4.0%
4.5%
5.0%
INTEREST RATE
5.5%
6.0%
6.5%
MINIMUM QUALIFYING INCOME - CA

Minimum Qualifying Income
20% Downpayment
$120,000
$100,000
$81,798
$85,768
$89,873
$94,108
$98,468
$102,949
$107,544
$112,249
$80,000
$60,000
$40,000
$20,000
$0
3.0%
3.5%
4.0%
4.5%
5.0%
INTEREST RATE
5.5%
6.0%
6.5%
HOUSING AFFORDABILITY INDEX - CA

% OF HOUSEHOLDS THAT CAN BUY, ALL ELSE CONSTANT
50%
40%
36%
34%
20% Downpayment
32%
30%
28%
26%
30%
24%
23%
20%
10%
0%
3.0%
3.5%
4.0%
4.5%
5.0%
INTEREST RATE
5.5%
6.0%
6.5%
NET MIGRATION CA TO TEXAS BY INCOME GROUP

2007
2012
2,000
0
-2,000
-4,000
-6,000
-8,000
-10,000
-12,000
-14,000
-16,000
-18,000
SOURCE: U.S. Census Bureau, IPUMS, CAR
HOUSING AFFORDABILITY GAP
Affordability crisis goes beyond low

income households
Lack of affordable housing for low income
service workers is apparent
Less obvious problem: moderate income
households who cannot afford homes in/near
communities where they work
In general, there are programs to assist the first
group, but not the second group
FEWER HOUSING UNITS BEING TURNED OVER

SINCE THE GREAT RECESSION
CA
US
8%
7%
6%
5.0%
4.6%
5%
4%
3%
2%
1%
0%
2001
2002
2003
2004
2005
2006
2007
2008
2009
SERIES: Percent of existing single-family homes being sold

SOURCE: Census Bureau, American Community Survey, Moodys Analytics, C.A.R.
2010
2011
2012
2013
LENDING STANDARD DROVE 50% OF THE

DECLINE BETWEEN 2001 AND 2012
AFFORDABLE HOMES IN SHORT SUPPLY
HOMEOWNERSHIP GAP
HOMEOWNERSHIP RATES
California Vs. U.S. 9.9% gap in 2014
75%
CA
Peak: 69.0%
70%
65%
US
64.5%
64.8%
60%
Peak: 60.2%
55%
53.7%
50%
45%
SERIES: Homeownership Rates

SOURCE: U.S. Census Bureau
54.9%
HOMEOWNERSHIP RATE BY AGE OF

HOUSEHOLDER
SOURCE: Census Bureau
HOMEOWNERSHIP RATES BY AGE

California
80%
75%
65 &Above
70%
45 64
65%
60%
Overall Rate
35 44
55%
50%
Under 35
45%
40%
2000
2001
2002
2003
2004 2005 2006
SERIES: Homeownership Rates

SOURCE: U.S. Census Bureau, American Community Survey
2007
2008 2009
2010
2011
2012
2013
GROWTH IN NUMBER OF IMMIGRANT OR NATIVE

BORN OWNER (MILLIONS)
12
forecast
10
8
6
4
Native-Born
2
0
Immigrants
1980-90
1990-00
2000-10
2010-20
Source: Dowell Myers and John Pitkin, Immigrant Contributions to the Housing Market RIHA, Mortgage Bankers Association,
2013
SHARE OF FIRST-TIME BUYERS UP IN 14 BUT

STILL BELOW LONG-RUN AVERAGE
% First-Time Home Buyers
Long Run Average
50%
40%
Long Run Average = 38%
28.1%
30%
30.5%
20%
10%
0%
2005
2006
2007
2008
QUESTION: Was the buyer a first-time buyer?

SERIES: 2014 Housing Market Survey
2009
2010
2011
2012
2013
2014
WHY DO WE CARE ABOUT LOW LEVEL

OF FIRST-TIME BUYERS?
It signals a constrained flow of new households in the
housing market
Trade-up market cannot be replenished in the long
run
First-time buyers represent the main impulse that
drives the states homeownership rate
REASONS FOR RENTING INSTEAD OF BUYING

Can't afford to buy
44%
9%
Poor credit / Can't qualify

Renting is easier
6%
Young/Starting out/Not ready
6%
Flexibility/Freedom if renting
6%
Cost/Upkeep/Responsibility
5%
Plan to / Saving for down
5%
3%
Never considered it/No interest

Disabled/On disability
2%
SERIES: 2013 Renter Survey

MILLENIALS DIFFERENT
HOUSING ASPIRATIONS OR LACK
OF MEANS?
MILLENNIAL TRUE HOMEOWNERSHIP FALLING
AS AN INCREASING NUMBER OF THEM

STILL LIVE WITH THEIR PARENTS
SOURCE: U.S. Dept. of Commerce, Wells Fargo Securities LLC
IMMIGRANT SHARE OF GROWTH IN

HOME OWNERS
2010-2020
100%
90%
West
Midwest
South
Northeast
80%
70%
60%
50%
40%
30%
20%
10%
0%
Source: Dowell Myers and John Pitkin, Immigrant Contributions to the Housing
Market RIHA, Mortgage Bankers Association, 2013
Dowell Myers, USCPrice
MORE IMMIGRANTS FULFILLING THEIR

AMERICAN DREAMS
Source: Dowell Myers and John Pitkin, Immigrant Contributions to the Housing
Market RIHA, Mortgage Bankers Association, 2013
CA MILLENNIALS - OVER 1/3 LIVE WITH THEIR PARENTS

45%
41%
36%
40%
35%
30%
20%
25%
20%
15%
10%
1%
5%
1%
0%
I rent
I live with my
parents
SERIES: 2014 Millennials Survey

What is your current living situation?
I own
I live in a dorm
Other:
MANY OF THEM, HOWEVER, PLAN TO

LEAVE THE NEST BY 2018
SOURCE: 2013 Demand Institute Housing & Community Survey; 2013 Demand Institute Housing Forecasts
MILLENNIALS PUT OFF MARRIAGE,

BUT IT IS STILL IN THEIR PLAN
SOURCE: American Community Survey; 2013 Demand Institute Housing & Community Survey
MILLENNIALS BELIEVE IN HOMEOWNERSHIP
SOURCE: 2013 Demand Institute Housing & Community Survey
MILLENNIALS BIGGEST CONCERNS

Price/Affordability (45%)
Problems with Credit, Mortgages, or Taxes (19%)
Maintenance/Upkeep (14%)
Satisfaction with Home/Location (7%)
Responsibility (4%)
What are your biggest concerns about home ownership?
SERIES: 2014 Millennials Survey
STUDENT LOAN DEBT:25% OF RENTERS

Student Loan Debt
Amount of Debt
<$10,000
Refused, 2%
No, 75%
78%
$10-$20K
8%
$20-$50K
6%
Yes, 23%
SERIES: 2013 Renter Survey

$50-$100K
3%
> $100K
2%
Refused
2%
STUDENT DEBT: DRAGS ON HOME SALES
PERSPECTIVE ON STUDENT LOANS, MAJORITY

NOT AFFECTED
CALIFORNIAS HOUSING DELIMMA

Even with everything (or at least most things) going right, our
homeownership market is in trouble
The rental market, even with the conversion of 500,000 SFHs, is
still exhibiting inadequate supply
CA Housing Needs = Minimally 165,000 Units Annually
Regulatory Problem
Impact Fees
Public Attitudes
BUSINESS IMPACTS - FEWER HOUSING UNITS

BEING TURNED OVER
SINCE THE
GREAT RECESSION
Housing Turnover Rate
(Single-Family Homes only)
10%
9%
CA
US
8%
7%
6%
5%
4%
3%
2%
1%
0%

5.0%
4.6%
HOMEOWNERS DO NOT MOVE

AS OFTEN AS THEY USED TO
Tenure of Homeowners (Years)
30
CA
Long Run Average
25
18.9
20
Long Run Average = 15.9
15
10
5

2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
NET MIGRATION CA TO OTHER STATES
NET MIGRATION BY ANNUAL INCOME, 2007-2013
HOMEOWNERS DO NOT MOVE

AS OFTEN AS THEY USED TO
Tenure of Homeowners (Years)
35
CA
US
Reasons for longer tenure:

Mortgage Lock-in effects
30
Underwater homeowners
25
Lack of affordable trade-up/down

properties
20
15
More costly to move than to remodel
10
Investors using properties as rental
Prop. 13?
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
2012

HOUSING PRODUCTION GAP
CA PERMITS UP BUT MORE UNITS NEEDED

2014: 85,065 Units, Up 3.4% from 2013
2015f: 89,318 Units
350000
Single Family
Multi-Family
300000
250000
200000
150000
100000
50000
0
SERIES: New Housing Permits
SOURCE: Construction Industry Research Board
Household Growth: 165,000/yr
HOUSING CONSTRUCTION HAS SLOWED IN THE

CALIFORNIAS COASTAL METROS
Total Number of SFH Building Permits by Region
Inland
Coastal
120,000
100,000
80,000
60,000
40,000
20,000
SERIES: New Single Family Housing Permits

SOURCE: Construction Industry Research Board
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
# OF HOUSEHOLDS LOST IN THE GREAT

RECESSION
1,200,000
Households not formed
1,000,000
957,834
800,000
600,000
575,156
400,000
200,000
0
-200,000
-5,485
165,105
2009
2010
SOURCE: California Dept. of Finance; compiled by C.A.R.
223,058
2011
2012
2009 - 2012
POPULATION AND HOUSEHOLDS WILL

CONTINUE TO GROW
California 1970-2020
45,000,000
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
SOURCE: Moodys Analytics
2020
2018
2016
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
HOW DID WE GET HERE?

Why the Production Shortfall?
Shortage of Land:
Production shortfall greatest in cities where need is most
critical
High Costs of Development

Fees in most California communities are higher than
elsewhere in US
Infill development costs higher than suburban development
costs
Environmental policies, etc increase costs
Lengthy permitting process increases cost per unit
produced and favors deep pockets
HOW DID WE GET HERE?

General Desire for Low Density Land Use
Preference for detached single family homes
Disdain for multifamily developments
Cost of service to cities higher than other land uses

NIMBYism:
Desire to preserve existing character of community
Dislike for multifamily, higher density development by residents and
officials
Quality of life concerns
Fear of crime and other negative aspects associated with density
WHAT IS OUR FUTURE?
If current trends continue, California will build less than 60

percent of the new housing needed over the next 20 years.
Little Hoover Commission Report on Housing in California
SOLVING CALIFORNIAS
HOUSING PROBLEM
SOLUTIONS
Production Gap is Primary Source of CAs Housing
Problems
Solutions must include:
Increase in Production
Infill and brownfield opportunities in urban areas where

shortage is critical
Revitalization of Neighborhoods
Change Incentive Structure Facing Cities
Fiscal
Housing & Zoning Requirements
Enforce housing elements of general plans, create incentives to
comply
Improve Business & Legal Climate for Developers

CEQA Reform
SOLUTIONS
Attitude Shift is Essential to Moving Toward
Solutions
By Households as Residents
By Households as Taxpayers
By Local Elected Officials
By State Officials
and an Attitude Shift Requires Education and

Heightened Awareness of Problems, Implications, and
Solutions!
Solutions will take time
SOLUTIONS - LOCAL
Permanent city affordable housing subsidy source
Dedication of a share of county tax increment financing
to affordable housing
Revise zoning code and/or density bonus ordinance to
increase
Ease parking and set-aside requirements to enable more
backyard homes; granny flats
Convert unlawful but affordable units
Collaborate with business community
SOLUTIONS - STATE
CEQA Reform
Inclusionary Zoning
Experiment with social impact bonds & health funds
as a source
2015 FORECAST
CALIFORNIA HOUSING MARKET OUTLOOK

2009 2010 2011 2012 2013 2014 2015f
SFH Resales (000s)
416.5
422.6
439.8
414.9
383.3
398.4
24.5% -12.3%
1.4%
4.1%
-5.9%
-7.6%
3.9%
Median Price ($000s) $275.0 $305.0 $286.0
$319.3
$407.2
$447.0
$473.1
% Change
-21.1% 10.9%
Housing Affordability
Index
51%
48%
-6.2%
11.6%
27.5%
9.8%
5.8%
53%
51%
36%
30%
28%
4.5%
3.7%
4.0%
4.3%
4.5%
% Change
30-Yr FRM
474.9
5.0%
4.7%
SERIES: CA Housing Market Outlook

THANKYOU!
www.car.org/marketdata
joels@car.org

The Evaporating Dream: Homeownership in California

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THE EVAPORATING

What Kind of State Will CA be?

TODAYS CALIFORNIA HOUSING

2015 Q1 HOME SALES UP SLIGHTLY

SERIES: Sales of Existing Single Family Homes

*Sales are seasonally adjusted and annualized

MEDIAN HOME PRICE CONTINUES TO CLIMB

SERIES: Median Price of Existing Single Family Homes

SALES LOOKING POSITIVE SO FAR FOR 15

6 per. Mov. Avg. (Year-over-Year % Chg)

SERIES: Sales of Existing Single Family Homes, Seasonally Adjusted

INVENTORY REMAINS VERY TIGHT

SERIES: Unsold Inventory Index of Existing Single Family Homes

2015 - WHERE ARE WE TODAY?

INVENTORY DROPPED SIGNIFICANTLY

SERIES: Unsold Inventory Index of Existing Single Family Homes

WHERE IS THE INVENTORY?

WHERE ARE WE HEADED?

By 2025, California will have a middle class of

INADEQUATE HOUSING SUPPLY

Housing supply constrained in long-run

CALIFORNIAS 3 HOUSING GAPS

Chronic problems spanning decades, but

HOUSING AFFORDABILITY DOWN

SERIES: Housing Affordability Index of Traditional Buyers

INCOME REQUIRED TO BUY A MEDIAN-PRICED

Change in minimum required income:

Increase in income attributed to price

SERIES: Housing Affordability Index

HOUSING AFFORDABILITY IN CA: BY COUNTY

% able to purchase median priced home

SERIES: Housing Affordability Index

VERY SLOW REAL INCOME GROWTH

2013 gap = $5600

SERIES: Median Household Income

CALIFORNIAS MAJOR METROS ARE LESS

SOURCE: Legislative Analysts Office

RIVERSIDE AND SACRAMENTO ARE STILL BELOW THE AVERAGE

STATES LOW-INCOME HHS SPEND MUCH MORE!

SLOW WAGE GROWTH A CONCERN

HOW WAGES MEASURED AGAINST INCOME

Annual Mean Wage

SOURCE: Bureau of Labor Statistics, C.A.R.

HOW WAGES MEASURED AGAINST INCOME

Annual Mean Wage

Chefs and Elementary

SOURCE: Bureau of Labor Statistics, C.A.R.

MORTGAGE AND RENT PAYMENTS ABOVE

HOW WAGES MEASURED AGAINST INCOME

Annual Mean Wage

Chefs and Elementary

SOURCE: Bureau of Labor Statistics, C.A.R.

AND IN SAN FRANCISCO

HOW WAGES MEASURED AGAINST INCOME

Annual Mean Wage

Chefs and Elementary

SOURCE: Bureau of Labor Statistics, C.A.R.

MEDIAN MONTHLY MORTGAGE PAYMENT - CA

Q4-2014 Median Price $452,140

MINIMUM QUALIFYING INCOME - CA

HOUSING AFFORDABILITY INDEX - CA

NET MIGRATION CA TO TEXAS BY INCOME GROUP

HOUSING AFFORDABILITY GAP

Affordability crisis goes beyond low