In order to meet the needs of the working class in California, we need to work towards affordable housing solutions that are accessible to people with different economic backgrounds. The most affordable housing options available in California are those that are reserved for people earning under 30% of the area median income. This is a pretty large gap between the average income of a family living in California and the amount of money needed to afford a modest, single-family residence.
As of the most recent Census data, there are less than 323,0households in San Diego County that qualify for affordable housing.
The United States Department of Housing and Urban Development (HUD) defines affordable housing as a home that costs less than 30% of a family’s income. In California, the median income for a four-person household is $76,755, according to the California Department of Finance. To afford a 30% down payment on a $500,000 home in California, a family would need an annual income of $50,400.
When we look at the average household income in San Diego County, it is just under $105,000.
Fortunately, the cost of living in California is much lower than in most of the rest of the country. Currently, the average cost of living in California is just under $1,600 per month, so even with a take-home pay of $105,000 you may still struggle to afford a mortgage payment.
For a household to qualify for affordable housing, their income must be at or below a certain percentage of the area’s median income.
The term “affordable housing” usually refers to housing for those who make a specific percentage of the area’s median income. For example, if your income is 60% of the area’s median income, then you’re eligible for affordable housing. However, there’s no one-size-fits-all definition of affordable housing. According to the U.S. Department of Housing and Urban Development (HUD), “Affordable housing” is housing that most people earning at or below a certain percentage of the area’s median income could afford. It’s important to note that the percentage of area’s median income is different for each county.
That could mean making anywhere from $51,0to $143,0a year.
The U.S. Department of Housing and Urban Development’s website defines affordable housing as housing that is reserved for those who make 80% or less of the area’s median income. The median income for San Diego is $71,730 a year. Thus, for an individual making $51,000 a year, that would be considered affordable housing.
San Diego’s median household income is $77,000.
The National Low-Income Housing Coalition defines affordable housing in California as housing that is reserved for those earning between 50 and 80 percent of the area median income for their geographic area. Currently, the median household income is $77,000 for San Diego County. Therefore, a studio apartment that would cost $1,400 or more per month would be considered affordable for an individual earning $45,000 a year.
The percentage of households that qualify for affordable housing is 24.1%.
The Department of Housing and Urban Development (HUD) defines affordable housing as that which costs less than 30% of gross income for an individual or 50% of the median income for a household. So if your take home pay is $37,000, that would make your housing cost affordable if it were $9,300 or less. However, there is a catch: The definition of affordable housing varies according to where you live — in a rural county or a major city.
This means that if you fall into that category, you can expect to pay anywhere from $1,1to $3,4a month to rent a home or apartment.
The affordable housing classification is used by the U.S. Department of Housing and Urban Development (HUD) to describe a home or apartment that is within a certain percentage of what a median income would be for your area. So, if you make $50,000 a year, that would be $40,000 for a reasonable housing budget. Anything above that is considered affordable.
Conclusion
The definition of affordable housing can vary depending on who you ask. CNBC defines affordable housing as a place where a family earning 50% of the area median income (AMI) can afford to live, or $50,400 for an individual. If you are looking for a place that is affordable, you can use tools like Zillow’s Zestimate to find a market value for a home in your area. This will show you what the current housing market is worth and allow you to compare this value to the cost of your current living situation.
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