The Median Mortgage Payment in Los Angeles/Orange Counties: A Closer Look at Affordability
The median mortgage payment for homes purchased in the Los Angeles/Orange counties region during the first quarter of 2019 was $2,570, according to a report by Zillow. This amount is affordable only to individuals with a master’s degree or PhD, as the median income for that demographic is $133,093.
The report highlights a stark contrast in affordability between the L.A./Orange counties region and the rest of the nation. In 36 of the nation’s 50 largest metro areas, a typical mortgage is affordable to high school graduates. However, in the two-county area, the median mortgage payment accounts for 41.8% of the median household income, making it a challenge for many residents.
Renters in the region are also facing financial burdens, with the median monthly rent at $2,835, requiring a typical household to spend 46.1% of its income on rent. This situation is further exacerbated by the fact that a median-priced home in the L.A./Orange counties region is $649,700, making it out of reach for many average wage earners.
In contrast, costs are significantly lower in the Inland Empire, where the median mortgage payment is $1,455. This amount is affordable for those earning an income of $72,221 with an associate’s degree. The median home price in the region is $370,800, with the typical mortgage payment accounting for 26.6% of the median household income.
Overall, the report emphasizes the challenges faced by residents in the L.A./Orange counties region in terms of housing affordability. With high costs of living, high taxes, and other expenses, many individuals are finding it difficult to make ends meet. Additionally, the lack of new home construction is contributing to the rising prices, further complicating the situation for potential homebuyers.
Experts advise first-time buyers to be conservative with their home purchase and to buy within their means. Despite the challenges, there is hope that with proper financial planning and realistic expectations, individuals can still achieve their dream of homeownership in the region.