California households, with a median household income of $52,320, are $41,360 short of the $93,680 qualifying income needed to purchase a median-priced home at $406,390 in California, according to C.A.R.'s recently released Homebuyer Income Gap Index (HIGI) report for the first quarter of 2004. The Homebuyer Income Gap Index™ is a quarterly analysis of the difference between the median household income and the qualifying income needed to purchase a median-priced, single-family home for the state and for select regions within the state.
The Homebuyer Income Gap Index™ for California increased 45 percent during the first quarter of 2004 compared to the first quarter of 2003, when the gap stood at $28,530, the median household income was $51,180, and qualifying income needed to purchase a median-priced home at $338,010 was $79,710.
According to the report, potential homebuyers in the Central Valley, with a median household income of $40,250, had the smallest income gap in the first quarter of 2004 at $16,410, and needed a qualifying income of $56,660 to purchase a median-priced home at $245,790. The San Francisco Bay Area had the highest gap in the state at $68,920, where potential homebuyers had a median household income of $69,810 but needed a qualifying income of $138,730 to purchase a median-priced home at $601,820.