Local homes tilting toward unaffordability, new index finds

The persistent lack of housing supply in the region, and price pressures from the Bay Area, are making Sacramento-area homes increasingly less affordable. A new report by Attom Data Solutions on national home affordability revealed the following tidbits:

1. In the first quarter of this year, Attom gave Sacramento County homes got a score of 102 for affordability, with a score less than 100 considered less affordable than the historical average. A year earlier, the Sacramento County score was 111.

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2. Though not as quickly, other local counties are headed the same direction. Placer got a score of 108, El Dorado 112 and Yolo County 120 in the first quarter of the year; all were as affordable or moreso a year earlier.

3. Sacramento stands out from the other three counties in year-over-year price growth of 6 percent exceeding year-over-year wage growth of 5 percent, the only one of the area counties where that’s happening.

4. Affordability is even less common in the state’s coastal counties, with Alameda, Los Angeles, Contra Costa and Santa Cruz counties all scoring below 100. San Francisco, where prices have flattened in the last few months, is at 104, up from 96 a year earlier.

5. The first quarter of 2017 is also five years after the Sacramento region hit a modern high for affordability, in early 2012. Then, Sacramento’s score was 189, and the lowest in the region was Placer, at 162.

Article provided by: Sacramento Business Journal
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