Roughly 70% Of Angelenos Can't Afford To Buy Home In Los Angeles County

LOS ANGELES, CA – Nearly 70 percent of Los Angeles-area households could not afford a median-priced home in the region during the first three months of this year, the California Association of Realtors reported Monday.

According to the report, only 29 percent of Angelenos can afford to buy a $485,800 home – the median price in the county – during the first quarter of 2017. That's up from 28 percent in the last quarter but down from 31 percent from a year ago.

In order to afford a home in the Southland, the average household would need to have an annual income of at least $99,830, according to CAR. The monthly payment, including taxes and insurance, was $2,500. Compare that to San Bernardino County, where more than half of the residents can afford to a home, the minimum qualifying household annual income was $52,790 ― a little more than half the amount needed in L.A.

Los Angeles, however, was still more affordable other coastal counties in Southern California. In Orange County, a salary of $154,120 was needed to afford a median-priced home and only 21 percent of buyers can afford to do so. San Diego County required an income of $115,900 and only 29 percent can afford a home there.

Statewide, 32 percent of households could afford California's median price of a house ― $496,620 ― during the first quarter of 2017. That required a yearly income of $102,050 and monthly payments of $2,550.

A little over four years ago, 56 percent of California households could afford to purchase a single-family home.

Forty percent of home buyers were able to purchase the $414,940 median- priced condo or townhome in the first quarter of this year. An annual income of $85,270 was required to make a monthly payment of $2,130.

Nationwide, 57 percent of households could afford a median-priced home of $232,000 in the quarter, requiring an annual income of $47,690, and monthly payments of $1,190.

― City News Service contributed to this report. Photo via Shutterstock