Housing Affordability Across So. Cal drops.

In response to the recent jump in housing prices, housing affordability in southern California has fallen across the board. That’s good news for California’s property managers interested in finding middle cost properties with tenants on the fence over whether or not they want to purchase.   

After a whopping record high of 42 percent of Southern California residents being able to find affordable housing in early 2012, the California Association of Realtors is reporting that the figure has dropped to 27 percent, a number unseen since the height of the recession.

California’s tenants are responding by turning more towards the long term housing rental market to keep their housing needs afloat without breaking the bank. Not surprisingly, the strong demand for apartment living has driven up rents in reaction.

The falling housing affordability is believed to be primarily caused by increased investor interest and LA’s unique position of having few buildable lots for developer driving up home prices. You could find more information on the current state of affordable housing, here.