Tracking Down Reality In LA
The debate is on in Los Angeles over just how unaffordable it is there. "Los Angeles County's affordability index fell an annual 5 percentage points. John Karevoll, an analyst at DataQuick, said the index doesn't seem to track reality."
Karevoll thinks the measure between incomes and home prices has lost meaning. "It's an interesting number but for the past two years or so, it hasn't really meant anything to tell anybody anything. Statistics should either predict something or explain it, and this doesn't do any of those things."
CAR economists have this to say. Robert Kleinhenz "notes that inventory, while still low, is about double last year's level. It's the first-timers who are left out in the cold. I don't think we should lose sight of the fact that a reading of 17 percent for a long time is cause for concern."
Leslie Appleton-Young CAR VP and chief economist, said "I do think we're at a real crisis point, not for existing owners or trade-up buyers, but for first-time buyers.'"
The Governor puts in his two cents. "It's extremely important...not to just build malls, but affordable housing."