Affordability remained a particular concern in the past year for Black and Hispanic homebuyers in San Diego County, as home prices soared to record highs and interest rates jumped to levels not seen in more than a decade, the California Association of Realtors reported Wednesday.
In San Diego County, a minimum annual income of $206,800 was required to qualify for the purchase of a $911,000 median-priced single-family home in 2022, assuming a 20% down payment. The association determined that the monthly payment, including taxes and insurance on a 30-year fixed-rate loan, would be $5,170.
The bill would create a $1 billion program to lend first-time home buyers 17% of the home’s purchase price, according to NBC 7’s Jackie Crea.
CAR also found that San Diego County had an affordability gap of 11% between blacks and the total population last year. For Latino households, the association reported that the affordability gap was 9% in 2022.
With an affordability index of 7%, San Diego was among the least affordable counties in California for black households last year, according to CAR. The affordability rate for Hispanics was 9%, compared to 23% for Asians and 22% for the white/non-Hispanic population.
Across the state, 21% of residents had the minimum income needed to purchase a median-priced home of $822,320 in 2022, down from 27% in 2021. Meanwhile, housing affordability has declined for families White/non-Hispanic from 32% in 2021 to 26% last year, according to the association.
Meanwhile, 12% of Black and Latino households could have purchased the same median-priced home in 2022, down from 16% and 17% in 2021, respectively. The large housing affordability differential for Black and Latino households, CAR said, illustrates the home ownership gap and wealth disparity for communities of color, which could worsen as the economy slows and rates continue to rise this year.
Statewide housing affordability was better for Asians but also down from a year earlier. The index recorded 31% of Asian homebuyers could afford a median-priced home in 2022, down from 38% in 2021, according to the index. The ability to bear the housing costs of the association.
CAR reported that the housing affordability gap between blacks and the overall population in California improved from 11.7 percentage points in 2021 to 9.8 percentage points in 2022, while the gap between Latinos improved from 10.5 percentage points in 2021 to 9.4 percentage points in 2020. 2022.
According to the Census Bureau’s American Community Survey, the 2021 homeownership rate for all Californians was 55%, 63% for whites, 60% for Asians, 44% for Hispanics and 37% for blacks.
A minimum annual income of $186,800 was required to qualify for the purchase of the statewide single-family home with a median price of $822,320 in 2022, as determined in the Central African Republic.
The monthly payment, including taxes and insurance, on a 30-year fixed-rate loan would be $4,670, assuming a 20% down payment and an effective compound interest rate of 5.47%. Median income in California in 2022 for whites was $105,640, $120,040 for Asians, $76,310 for Latinos, and $64,190 for blacks — an income gap roughly one-third of the total population, which was $93,380.
A separate report from SmartAsset says you need a minimum salary of $79,324 to live “comfortably” in the San Diego Metro Area.
Kevin and Charissa Pitre moved to Chula Vista from out of state looking to settle into a co-owned property where they could live after their retirement, but they saw firsthand how record prices and rapidly rising interest rates left them in a difficult situation.
“In three months, 90 days, interest rates have gone up to 6.3%,” Kevin Peter said. “At that point, I knew it was over. There was no way we could afford it.”
The home ownership gap and inequality in communities of color could widen if the economy slows and rates remain high.
“There is definitely a disparity. However, that’s just now, financially, it’s a struggle for a lot of people,” Destiny Roxas realtor said.
She said she’s noticed an increase in families stepping in to help with down payments, especially in this high interest rate environment. She also hopes California Dream For All can help. It’s a prepaid assistance plan that was recently launched late last month.
“I definitely think it’s an opportunity and an entrance, you know, at many different times in the past, a lot of people and people of color have felt like that entrance is closed or barely open. So I think this is a great way to open the door to home ownership.”
“Twitteraholic. Total bacon fan. Explorer. Typical social media practitioner. Beer maven. Web aficionado.”