The percentage of households in California able to afford a median-priced home decreased by five percentage points in February compared to a year ago, according to a report released today by the California Association of REALTORS* (C.A.R.).

The February 2002 Housing Affordability Index (HAI) stood at 31 percent, down five points from 36 percent in February 2001, according to C.A.R. The February HAI was unchanged from January 2002, when it also was 31 percent.

"Double-digit home price appreciation pushed the statewide median price to a record $289,550 in February, a 19.8 percent increase compared to a year ago," said C.A.R. President Robert Bailey. "Following January's 17.1 percent year-to-year increase in the cost of a single-family home, housing is becoming increasingly unaffordable for many families in California.

"With affordability for the U.S. holding steady at 57 percent in February, the affordability gap widened to 26 points for California compared to the rest of the country," Bailey said.

C.A.R.'s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The index is the most fundamental measure of housing well-being in the state.

C.A.R.'s March existing home sales and price report will be released on April 25.

The California Association of REALTORS* (http://www.car.org) is one of the largest state trade organizations in the United States, with more than 100,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

Published: April 8, 2002

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