L.A. Homes Rank #5 in Nation for Unaffordability
If you're stuffing your piggy bank in hopes of someday being able to buy a home in Los Angeles, better hope you're stuffing rather vigorously. Homes in Los Angeles are considered "severely unaffordable," according to an annual report issued by Demographia which examines home prices versus incomes in global metropolitan markets. When it comes to being unaffordable, L.A.'s homes rank fifth in the nation at 5.9 times income, behind three other Californian cities and New York, according to Businessweek. In America, "the most unaffordable major metropolitan market was San Francisco, where homes cost 7.2 times income, followed by San Jose (6.7 times), San Diego (6.2 times), New York (6.1 times)," with L.A. right behind.
In the global real estate game, Americans are actually faring better in terms of home affordability, coming in last in the rankings behind Australia, Canada, Hong Kong, Ireland, New Zealand, and the U.K.
Still want to buy a house? Your best bet would be moving out of state; no Californian cities ranked as affordable by Demographia. How does Atlanta sound? Interested in Indianapolis? Or you could just keep feeding that hungry, hungry piggy bank.