November 7, 2024 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

Real estate prices continue to rise, hurting affordability for most

Bess Hochman is a top Westside real estate broker of more than 20  years.
Bess Hochman is a top Westside real estate broker of more than 20 years.

The luxury Westside of Los Angeles is among the high income metropolitan areas that are the least affordable, even in the face of the high incomes of the households in these areas.

High income metropolitan areas are tending to present a greater problem of affordability than low income areas. One reason for this is that higher income earners are bidding against each other for still limited reasonably priced inventory driving up prices.

The higher income metropolitan areas also tend to have less new construction to add to existing inventory as opposed to lower income metropolitan neighborhoods.

Six of the seven least affordable markets for the middle class are found in California.  Los Angeles ranks as the second least affordable area in the United States for the middle class with San Francisco taking the top spot. San Diego is third, Orange County is fifth and San Jose and Ventura county rank sixth and seventh respectively.

Currently a household in the middle-income bracket in Los Angeles would be able to afford only 22 percent of the homes currently for sale.
Recent data shows that across the country young adults under 35 years of age, referred to as the Millennials, are having an even bigger challenge. They are having a tough time finding jobs and their incomes are lower than the incomes of those in the older age categories.

Los Angeles ranks as the third least affordable housing market nationwide for Millennials. San Francisco is at the top of that list and Orange County comes in second.

Nationwide annual home price gains are at about 6.4 percent. The rate of appreciation is expected to fall in 2015 as affordability issues continue to present an obstacle to home purchases.

The ability to afford a home is expected to get more difficult for both Millennials and the middle class. Realizing the dream of owning a home is not likely to get any easier unless there is a substantial rise in incomes.

Affordability is typically measured according to government guidelines as having enough income to show the ability to make a 20 percent down payment and meet your home’s monthly carrying costs, including mortgage payment, taxes and insurance using no more than 31 percent of household income.

According to the anti-poverty charitable organization, Oxfam, the inequality in wealth is becoming greater robbing millions of people of better life chances and presenting one of the biggest barriers to ending global poverty.

The richest 1 percent of the people in the world are likely to control more than half of the globes total wealth by next year according to the study conducted by Oxfam.

While support is growing for Oxfam’s call for a fairer world, including leading economists and politicians, the appetite for Los Angeles Super Mega-Million Dollar real estate remains unabated.

For a free courtesy consultation, contact Bess Hochman, a top Westside Real Estate Broker for more than 20 years. Bess is also distinguished by holding a law degree. This article expresses the opinion of the author. You are advised to consult 
attorneys and others experts specializing in the 
issues referenced in this article. Contact Bess by phone at 310.291.4111 or email Bess.CenturyCityNews@yahoo.com.

“Bess is a master negotiator!” says Michael Donaldson, attorney & author of “Negotiating For Dummies.”

Related Posts

Lei’d Cookies in Culver City Offers Sweet In-Store Discount For a Challenging Week

November 6, 2024

November 6, 2024

Handcrafted Flavors, Community Spirit: Enjoy Lei’d Cookies’ Limited-Time Offer Lei’d Cookies, a popular dessert spot in Culver City’s Hayden Tract...

Thanksgiving 2024: The Best Places to Order Your Holiday Pies in Los Angeles

November 6, 2024

November 6, 2024

Get Ready for Your Thanksgiving Dinner With the Best Desserts November is the official start of the holiday season and...

L.A. County Election Results: Preliminary Counts as of 4:00 a.m. Wednesday Morning

November 6, 2024

November 6, 2024

Westside Residents Weigh on Representatives, Ballot Measures, Judges and More As of 4:00 a.m., voters in Los Angeles County weighed...

Culver City Municipal Election Results as of Wednesday, November 6 at 1:21 a.m

November 6, 2024

November 6, 2024

Preliminary Results in the Latest Election for Culver City as Votes Are Tabulated In the latest results from the Culver...

Police Seek Suspect in Vandalism of Jewish-Owned Businesses in L.A.’s Pico-Robertson Neighborhood

November 5, 2024

November 5, 2024

Authorities Investigate Series of Early Morning Attacks as Hate Crime Police are actively searching for a suspect accused of vandalizing...

Driver Arrested in Culver City for Narcotics Possession and Unregistered Firearm

November 5, 2024

November 5, 2024

Early Morning Traffic Stop Reveals Suspected Drugs and Loaded Gun A traffic stop early Friday morning led to the arrest...

High Alert: L.A. County Braces for Extreme Fire Weather and Powerful Winds

November 5, 2024

November 5, 2024

Residents Urged To Prepare as Red Flag Warning Goes into Effect  The Los Angeles County Fire Department, Sheriff’s Department, and...

The Willows: 30 Years Going Strong

November 5, 2024

November 5, 2024

Founded in 1994, The Willows Community School, located in Culver City, California, is a Developmental Kindergarten through 8th grade non-profit, co-educational...

Election Day Freebies and Discounts: Where to Eat, Drink, and Watch Election Results

November 4, 2024

November 4, 2024

From Free Doughnuts To Watch Parties, How To Unwind With Election Night Deals With this election day being one of...

Early Morning Call From Community Leads to Burglary Arrest in Culver City

November 4, 2024

November 4, 2024

Police Respond To Suspicious Activity Call, Arrest Suspect With Pickaxe Culver City police arrested a man early Friday morning in...

Culver City Police Department is Prepared to Ensure Community Safety During Election Week

November 4, 2024

November 4, 2024

Enhanced Patrols, Activated Emergency Center Ready, Culver City Voting Center is Open The Culver City Police Department has announced an...

Legendary Music Icon Quincy Jones Dies at 91 in Bel Air

November 4, 2024

November 4, 2024

Celebrated Musician, Producer Leaves an Indelible Legacy By Dolores Quintana Legendary musician, music producer, film and television producer, composer of...

Academy of Motion Picture Arts and Sciences Lays Off Longtime Archive and Library Staff

November 4, 2024

November 4, 2024

Downsizing and Restructuring Continue, Affecting Employees with Decades of Service By Dolores Quintana Last week, the Academy of Motion Picture...

LA County Opens 526 New Vote Centers for Early Voting, Announces Conditional Voting for Unregistered Residents

November 3, 2024

November 3, 2024

Metro LA Offers Free Rides on Election Day to Help Residents Get to the Polls Los Angeles County opened an...

New Aviation/Century Station Opens, Linking Metro’s C and K Lines

November 3, 2024

November 3, 2024

Metro’s Newest Station Paves the Way for Future LAX Transit Center The new Aviation/Century Station officially opened this week, marking...