Sunday, July 10, 2005

Middle Class? Second Class!

The Associated Press reported today that the housing market in big cities nationwide isn't just pricing out low-income families, but white-collar professionals. I am in no way saying that low-income families don't need assistance, but let's be honest. With the help low-income families qualify to receive, they have a better chance at buying a home nowadays than a middle-class couple making low six figures. But, of course, this is not a housing bubble, so stop your bellyaching. Here's a snippet from the AP report:
"Real estate experts warn that housing prices in many markets are too quickly outpacing the incomes of most workers. The widening gap affects families across the country, from Washington D.C. and Rhode Island to Florida in the South and Nevada and California in the west.

In California, the situation has long been the worst: Only 17 percent of households could afford a home with a median price tag in April, according to the California Association of Realtors.

By May, the median home price in California climbed to $522,590 -- more than double the price in most other states. To buy the typical home with monthly payments of $3,067, a California family would need to earn about $122,700 to qualify for a conventional loan."