January 25, 2005

Dirt Gap in Action in California

http://www.iSteve.com/05JanC.htm#blue.california

Why the land of Nixon and Reagan votes solidly Democratic now: Youngish Southern Californians can't afford to buy a house, so they postpone getting married and having kids, all processes that make people confirmed Republicans. The LA Times reports:

The percentage of households in Los Angeles County able to afford a median-priced home of $474,570 was 17% in November, down from 23% a year ago when the median was $382,190, according to the latest figures reported by the California Assn. of Realtors. The Orange County median for November was $633,340, with only 13% of households able to afford a residence, down from 18% a year ago...

"With a $450,000 median home price," said Leslie Appleton-Young, chief economist with the California Assn. of Realtors, "if you can save 20%, do the math. How many first-time buyers have access to that kind of money?"

Not only does a buyer need a hefty sum for a down payment, L.A. County buyers needed an income of $109,971 to qualify for a 30-year fixed-rate loan with 20% down on a median-priced home in November. In Orange County, the annual income needed was $146,763.

Also, 20% down on the $475,000 median price house in LA County is $95,000 in cash. In Orange County, you need $127,000 in cash on hand.

On the other hand, it was 75 degrees and sunny today in SoCal and the hills, for once, are as green as Ireland.


Steve Sailer's homepage and blog is iSteve.com

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