Descriptive Statistics California's Unaffordable Housing.

1048 words - 4 pages

Our team is pleased to provide this paper discussing the California housing market and its apparent lack of affordability for the average wage earner. With the research and statistics behind us, we will now focus on the analysis of the data and will provide the reader with some recommendations for dealing with this economics problem. In review, the Team researched housing prices, household incomes, and mortgage interest rates. Each of the three factors has a significant influence over the affordability of owning a home in California.Housing pricesBased on our research over a ten-year period, housing in California has spanned from a low of $178,160 to an all time high of $525,000. A range of $347,730 over the research period equals an increase of 196%. The average over the years was $346,841 which is in line with the actual median price of $343,825. This indicates a steady increase over the years. Certainly there are homes that cost much more and much less than the median reported home price, however, our data looked at California as a whole and did not regionalize the information.Household income.During the same ten year research period, the average California household earned as little as $37,009 and as much as $51,190. These are average household incomes as reported by the Census Bureau. Although there are households that earn much less and much more, our research was focused on statistical averages. Household incomes reported a narrow range of growth, compared to the housing prices. Over the research period, incomes spanned $14,181, reporting a ten year growth of only 38.3%, if home prices where to stop at this point, income would have to double to match the affordability; a significant variance from the home price growth of 196% for the same period. Based on the data, the average income over the years was $46,680, and the median income was $48,368, again reflective of a steady increase. Big changes are possible but the population that already purchased expensive real estate would be affected where the value of their real estate would have to stay the same approximately for twenty five to thirty years. That is correct close to thirty years at the current household income increase rate.Mortgage interest rates.Anyone who has purchased or refinanced a home knows of the many types of loans available to borrowers. Our research was based on the 30 year, fully amortized, fixed-rate home loan. Over the research years, mortgage rates were at a low of 4.12% up to a high of 9.23%, spanning 5.11% in all. The median rate in our data is reported at 5.99%, and the average rate is 6.58%. Unlike household income and housing prices, rates were more prone to volatility and variance over the ten years researched. There is not a measured steady increase as there was in incomes and prices. However, there were no anomalies in the rata data and the mean and the average are reasonable central tendencies.What does it all mean?At some point in the ten research years the...

Find Another Essay On Descriptive Statistics - California's Unaffordable Housing.

California and The American Dream Essay

1497 words - 6 pages more jobs, more opportunities, and the perfect weather. California's population continued to grow, reaching an increase of 137 percent from 1960 to 1990. “However, this golden age of migration into the state is over. For the past two decades, California has been sending more people to other American states than it receives from them. Since 1990, the state has lost nearly 3.4 million residents through this migration” (

final Essay

889 words - 4 pages The main point of an exploratory study is to conduct inquiry into a topic, gather information, and share that information with readers. When conducting a research it’s not as simple as collecting information, it is crucial to recognize the different methods that can be used in order to become an effective examiner. Exploratory and descriptive study are both significant, exploratory research doesn’t have a lot of information on

Unemployment Effect on Disability Fraud in State of California

1195 words - 5 pages investigations during each period. These both will allow us to see a direct correlation to the number of unemployed to the number of fraudulent disability claim investigations throughout the time period indicated. The data should support the hypothesis by showing that the numbers are proportionate. Descriptive vs. Inferential: We will use Descriptive Statistics. Using Descriptive Statistics is the best approach for the type of data we hope to collect

Formation of Negative Perception

1682 words - 7 pages has encouraged deep reflection on the role of the government in the real estate market. Nowadays, apart from the rent of public housing, the rental price of housing is determined by the market. When housing is in great demand, the rental level would go sky-high which is unaffordable to the poor. In the Annual Report on the Consumer Price Index 2011, in the Composite CPI for rent increased by 7.5% in 2011 (Census and Statistics Department, 2012

A Road to China Sustainable Development

3578 words - 14 pages farming or breeding Yes completely big change over one third of land has been idled buy with money Seldom only at big events like CNY Yes quite often Health Care   in general big burden 100% cooperated social insurance 90% deadly disease unaffordable 100% Housing   traditional house, cost low, no big problem 100% cost over tens

Relocating Orlando's Natives

1012 words - 4 pages wherever there is affordable or unaffordable housing. Unfortunately, if tourism continues to dwindle, it’s a possibility that sales taxes will be raised to increase revenue and this could be a problem for people who are barely making it on “minimum wage” jobs. Although Florida is considered a thriving city, the salary is not comparable to other larger cities and people from other states are not comfortable with the wages that are offered. Being

Housing Industry

2828 words - 11 pages The housing industry has a significant effect on the economy and affects every person's life who is a homeowner or renter. The housing industry plays an important role on economic relations, individually, across the United States, the international market and economic globalization in terms of trade in building materials, like lumber, cement, and steel. Historically the government has tried assisting people with homeowners by supporting

Government Financial Aid For Students Should Not Be Based Solely on Merit

1776 words - 7 pages scholarships. Such extra education is mostly unaffordable for the low income students. According to a report, basic necessities such as health care and housing cannot be afforded by around 41 million people in working families (Study: 41 million in U.S. can't afford basics 2007) In terms of fairness, underprivileged students cannot afford the extra expenses for studies let alone to have good basic requirements in life. This point had prove that it

Causes and Effects of Increased University Tuition Cost

1137 words - 5 pages staff to man these buildings, more staff means a higher payroll. This affects the tuition costs, since it has to increase in order to support the new expenses that come out of the faculty maintenance as well as the staff required for it. When undergraduate freshmen enroll in a university with housing in-campus, they expect comfortable rooms with internet and cable as well as other things that were considered luxuries a few years ago. This also

ecological sustainability

1711 words - 7 pages disposal and recycling programs with the support of Saskatchewan Waste Reduction Council and Saskatchewan Environment (Government of Saskatchewan, 2013c). The expenditure of waste disposal is increasing whereas capacity of landfill is decreasing day by day (Salkie et al., 1995). Moreover, negative impact of waste disposal on environment is making the residents more concern (Statistics Canada, 2005). Population growth results in an increase in housing

Poor Educational Achievement and Opportunities for Foster Youth

1985 words - 8 pages Foundation listed in their article, “California's Emancipating Foster Youth: A Compilation of Statistics,” costs that are incurred by the State if foster youth are incarcerated: “Medical costs borne by the government - Property damage - Loss of productivity to society - Loss of work time by victims, their families and the offender - Loss of property values in areas of high crime - Pain and suffering of crime victims and society. The cost to the

Similar Essays

Affordable Housing Crisis Essay

1177 words - 5 pages specifically, the targeted range for housing affordability sets below 30 percent of a household's annual income, including all applicable taxes, utility costs and home owners insurance rates. If the mean income per household breaches the 30 percent mark, then the agreed status becomes labeled as "unaffordable" by most recognizable financial institutions. U.S. Department of Housing and Urban Development (HUD): Affordable Housing HUD User

A Hopeful Benefit To All: Riesman's Veto Groups Theory And The Usc Village

2387 words - 10 pages elite positions - and this project supports that interest. Besides providing the local community employment opportunities, USC is also working to help maintain affordable housing for those already living in the neighborhood. One of the biggest concerns of the Village project was that it would significantly raise property values in the neighborhood, making housing unaffordable for families that have been living there for years (Cortes 2004

Zambia's National Budget Allocations Towards Sustainable Housing

3599 words - 15 pages 4.0 INTRODUCTION The purpose of this chapter is to outline the findings of the survey that was conducted in order ascertain various aspects concerning national budget allocations towards sustainable housing. To start with, the objectives of the research are restated, the research methodology is outlined. The survey results are then presented and examined according to each objective. The chapter concludes by summarizing key findings. 4.1

Swot Analysis Of Vancouver

1586 words - 7 pages income, or to buy one for less than about three times its income. Unfortunately, Vancouver is ranked as the second most unaffordable metropolitan area (after Hong Kong) in The 10th Annual Demographia International Housing Affordability Survey with a Median Multiple of 10.3. This is calculated by dividing the median house price with the annual median household income. In this case, Vancouver’s median house price is $670,000 and its annual median