patrick.net

http://ochousingnews.com/blog/coastal-california-housing-least-affordable-us/

Persistent shortages of housing in Coastal California inflates both rent and home ownership costs relative to incomes, making housing an economic drain.

affordability_ceilingDespite the rapid home price increases from March 2012 to July 2013, I’ve consistently maintained we are not in a new bubble — at least not yet. The housing market reports I publish each month compare the cost of owning real estate to the cost of renting it, and as long as these two alternatives for acquiring homes is in balance, I consider the market affordable. The weakness in this analysis is that it assumes either renting or owning is affordable, but if neither one is affordable relative to incomes, the market can be very unaffordable despite the balance between ownership costs and rent.

Source: http://ochousingnews.com/blog/coastal-california-housing-least-affordable-us/#ixzz3Bb55pCCN

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