NAHB: California Lowest on 'Affordability' List

Eight of the nation's 10 least affordable metropolitan areas -- and 24 of the bottom 30 -- are in California, according to the latest quarterly opportunity index compiled by the National Association of Home Builders and Wells Fargo. Although homes were more affordable in all of California's 28 metro areas in the fourth quarter, the cost of housing remains out of reach for mainstream buyers. Statewide, just 18.1% of all the homes sold in the period were affordable by a median-income family, the index indicates. That's up from 12.6% in the third quarter. But it still leaves the majority of Californians way behind when it comes to buying power. Nationally, in contrast, 46.6% of new and existing homes sold in the fourth quarter were affordable to families earning the national median income. "Despite market corrections that have made some areas in California more affordable, the fact remains that the cost of housing in California is out of reach for the vast majority of hard-working families struggling to buy their first home," said Robert Rivinius, president of the California Building Industry Association. The NAHB can be found online at http://www.nahb.com.