We’re number one!

http://blogging.la/archives/images/2007/07/murphy%27s%20gate-thumb.jpgIn terms of least affordable housing that is. Yes, my fellow Los Angelenos, according to Forbes, we have finally surpassed San Francisco (and San Diego and New York and Miami …) as far as ridiculous real estate prices go (home prices compared to earnings). Only 3% of houses sold at the beginning of 2007 were affordable to people earning the median salary (as compared to 42.3% in 2001). [Hat tip to Curbed LA for the link.]

I personally work for a nonprofit and the thought of trying to buy something in this bloated market is nothing short of laughable. To make matters even more depressing Forbes further informs me that I would have to make seven times my current income to “live well” in LA. Sadly, when I hit the link to find out what cities could offer me the good life, the answer is, well, none. I guess I’ll just have to wait for the next big one to buy.

(Photo courtesy of NoiseCollusion/ Matthew Robinson.)

6 Replies to “We’re number one!”

  1. Forbes’s criteria for living well includes owning both a BMW & Lexus and living in an upscale neighborhood, and taking 3 luxury trips a year. For the average person, like myself who owns a Japanese car and lives in an average neighborhood, taking 3 trips a year to visit family (no hotel expenses) this calculation is completely skewed. I would take it with a grain of salt. According to this I would not be able to afford any location either.

  2. Yes, Bert, I would imagine Forbes would have a skewed standard for “living well.” Honestly, I thought it was funny in a sad sort of way. Nonetheless, I would have to sell a kidney on the black market to afford a mortgage. But hey, at least I don’t have to mow a lawn, huh?

  3. Will the next generation be destined to be renters in Los Angeles?

    Many of my co-workers live in Apple Valley, and drive over 100 miles one way to downtown Los Angeles, in order to have their own home.

  4. Colin: Clearly Forbes does not understand how truly well one can live on the bounty of St. Vinnies, etc.

    And Edward: Call me an early adopter–I’ll never be able to own in this town unless I abandon the notion of saving the world for a living (i.e., get a job at a for-profit). That said, I would rather rent a studio than live in the Hearst Castle and drive 100 miles each way in LA traffic. But I know I am not typical that way.

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