by Calculated Risk on 8/04/2005 09:00:00 PM

The California Association of Realtors (C.A.R.) released survey results this week showing: "California Households Fall $70,480 Short in Income Needed to Purchase Home; Income Gap in San Francisco Bay Area at $102,230"

California households, with a median household income of $53,840, are $70,480 short of the $124,320 qualifying income needed to purchase a median-priced home at $530,430 in California, according to the California Association of REALTORS(R) (C.A.R.) Homebuyer Income Gap Index(TM) (HIGI) report for the second quarter of 2005, released today.

Click on graph for larger image.

The Homebuyer Income Gap Index(TM) for California increased 28.3 percent during the second quarter of 2005 compared to the second quarter of 2004, when the gap stood at $54,920, the median household income was $52,630, and qualifying income needed to purchase a median-priced home at $461,280 was $107,550.

Although I think there are some inherent problems comparing medium income to medium house prices, the year over year comparison seems appropriate.