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Sacramento Home Prices Still Outpacing Wage Growth

Courtesy of Taylor White / Flickr
 

Courtesy of Taylor White / Flickr

Home affordability in Sacramento County continues to get worse, according to the latest statistics.

The first-quarter numbers show the median sales price in Sacramento County was nearly $293,000. If someone was buying that home, and they're earning the average wage, they'd need to spend 41 percent of their income on a monthly house payment. Nationwide, the average is only about 34 percent.

Daren Blomquist with research firm ATTOM Data Solutions says the Sacramento region's affordability index fell eight percent from the same period last year.

"And that's really because we've seen wage growth continue to be outpaced by home price growth in Sacramento County," says Blomquist. "Home prices are up six percent year-over-year, wages are up five percent over just the past year. And that's, along with higher interest rates, that's making the affordability situation worse in Sacramento County than it was a year ago."

Still, Blomquist says the housing market in Sacramento County remains more affordable than it has been historically. The region's least affordable period was at the end of 2005 when the median price was about $356,000. 

 real estatewages

Steve Milne

Morning Edition Anchor & Reporter

Steve is the voice of Capital Public Radio News as anchor of Morning Edition and Insight. He covers stories on a wide range of topics including: business, education, real estate, agriculture and music. Steve also produced stories for CapRadio.org.   Read Full Bio 

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