February 28, 2007

"Affordability is the lowest here of anywhere in the U.S." – Long Island is less affordable??

This morning, Burbed Reader Liz posted a comment with this line:

Affordability is the lowest here of anywhere in the U.S.

Ah, just what I like to hear. Until I read the full comment:

$2800 a month rental is the norm here on Long Island. For some reason our housing prices arent as high as yours… although we make much less here. Affordability is the lowest here of anywhere in the U.S.

But our rents are EXTREMELY high for some reason. An average one bedroom apt. is now about $1700 a month. Houses rent for upwards of 3k and up.

liz

Wait a minute. Liz, when you say that Long Island has the lowest affordability of anywhere, it means that it is the most unaffordable place in the nation. And as we know “unaffordable” means “special” and “desirable”.

How dare you try to steal that mantle from the Bay Area!

Here’s a chart using the same data from this entry:

sjvsli.png

In particular, observe the wider blue and purple lines. Those show the ratios between home prices and incomes. Notice that the ratio is about 6.75 here in the San Jose area, versus 4.95 in Long Island.

That’s because the median home price is $655k with a median income of $97k in San Jose versus a median home price of $450k with a median income of $91k in Long Island. Also, as show in my previous bubble war piece, in desirable areas like Mountain View, CA (home of Google) vs North Hempstead, NY (home of LL Cool J apparently) -incomes are actually less.

(BTW, that rent is high is a good thing – it means that high home prices are rational. Though to be clear, a 1 bedroom apt in Mountain View is probably about $1300 at this point.)

Phew. That was a lot of work. I’m just glad I was able to show that the Bay Area is #1 in most unaffordable. We’re #1! We’re #1! We’re #1!

Sorry Liz! Thanks for your comment though!!

Click here to post a comment -- Posted by: burbed @ 8:30 am

No Responses to “"Affordability is the lowest here of anywhere in the U.S." – Long Island is less affordable??”

  1. LIBubble Says:

    It would be interesting to see the taxes and closing costs on that graph. When it comes to taxes and closing costs, we’re #1. Add that to the graph and then compare!

    http://money.aol.com/bankrate/realestate/closing-costs

    http://money.cnn.com/2006/10/03/pf/property_taxes/index.htm

    Now we know why house prices aren’t as overinfalted on Long Island.


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