In California, a home sold for $68,000 in 2010 is on the market for $368,000. A $300,000 difference in 13 years. According to Zillow, home prices have decreased by 3.4%.
The average cost of a home in California is set at $741,789. CBS News reports if there is a household with two incomes that each make the minimum wage in California, $15.50. $62,400 is what they would make combined before taxes.
California is a big state with a variety of options. Living in a city, the homes increase in price. Living in the outskirts, or the “suburbs” of said city, you will find a decrease in price.
A 3-bed home in Newport Beach CA surpasses the 1 million mark. A 4-bed home in Bishop CA is listed for $459,000. Even in smaller cities such as Bishop, there are still homes on the market
also surpassing that 1 million price.
Banking Strategist reports that homes in California cost 7x more than the average income. The average income for an individual is $33,719, and for a household is $78,672. Salary increases fall short in comparison to rising prices in homes. An increase of $6 was made to the average minimum wage since 2010.
California ranks as the second highest state of homes in foreclosure. An estimated mortgage of $4,973 is set for a $735,000 house. With a household income of $6,200, not much would be left
Benjamin Barraza, a Northrop Grumman employee sat down with me to talk about home-owning in the Golden State. “I’ve been at my job for five years now, so I felt as ready as I could be for
this next step.” You see, Benjamin and his newlywed, Wendy, never rented a space, they went straight to owning. “I was scared, and I still am scared,” said his wife, “I worry that one day we won’t be able to pay everything that we need to.”
Mortgages are not the only thing homeowners will pay for. There are bills for light, electricity, gas, etc. If a homeowner owns a car or has children or pets. Those are also expenses that need
to be met.
In Los Angeles, California there is a specific street named Skid Row. This street houses homeless people who have lost and left their homes, for various reasons. Michael, a man who was interviewed by Soft White Underbelly, a YouTube channel that interviews people who are invisible, shares his life growing up in Skid Row, which is “like a scary Las Vegas”. His parents were not able to afford housing during the 70’s, even though they both had jobs.
Homes ensure a sense of security, something Michael never experienced as a child. Benjamin felt strongly about creating a “safe space” for the family he plans to create in the future. Prices will continue to increase, as will the amount of people living on the streets. This issue, occurring for decades now, how could it not possibly be a worry for future generations?