Study: Real Estate Prices Impacting California School System
Southern California real estate prices are amongst some of the highest in the nation, but despite this, the local real estate market has only been growing due to the highly desirable nature of this region. But some say that the high prices could be having a significant impact on the California school system. That’s precisely what we’ll examine in today’s article from Southern California Berkshire Hathaway Realtor Brittany Leighton.
Why Are SOCAL Real Estate Prices Impacting California Schools?
According to an article in the Washington Post, California’s schools could be suffering because the teacher salaries just aren’t sufficient to keep pace with the rising real estate prices.
This data was discovered as the result of a study performed by Redfin, offering one explanation as to why the Golden State may be struggling so significantly to find qualified educators for its public school system.
According to the study, which examined the 31 most populated counties in California, a mere 17% of homes in the state could be afforded on the average teacher’s salary, which is currently at $73,536 per year. The “affordability” bar was established per the general standard that an individual’s mortgage payment (or rent payment) should account for no more than 30% of their total income.
These 2016 figures are significant because they reflect a decrease of nearly 50% since 2012, when a total of 30% of California homes were “affordable” on an average teacher’s salary.
While real estate prices are comparatively high in Southern California counties such as Orange County, Los Angeles County and Ventura County, there were several other areas of California that had a far worse situation in terms of overall affordability.
In Silicon Valley counties like Santa Clara and San Mateo, there were no homes available at a price that would be affordable on a teacher’s salary as of early September 2016. The situation was similarly problematic in the San Francisco area, Santa Cruz and in the Sonoma area.
Here is a look at how Southern California counties fared. The percentage refers to the percentage of homes that were affordable on a teacher’s salary:
- Ventura County – 1.4%
- San Luis Obispo – 2.6%
- Orange County – 3.2%
- San Diego County – 3.6%
- Santa Barbara County – 5.2%
- Los Angeles County – 7.1%
The areas of California with the most affordable homes included Merced (60%), Fresno (59.4%), Kern (56.5%), Butte (53.9%), Stanislaus (51.6%), San Bernadino (46.1%), Madera (43.8%), Sacramento (31.7%), San Joaquin (25.6%) and Riverside (24.7%).
Contact Realtor Brittany Leighton to Buy or Sell Real Estate In Southern California
Brittany Leighton, of Berkshire Hathaway and Brittany Leighton & Associates, Inc. specializes in luxury property sales in Southern California, including Orange County.
If you’re ready to sell your home or wish to buy real estate in Southern California, turn to an award-winning real estate agent, Realtor Brittany Leighton. Call 949.480.7178.