Orange County is No. 1 is US for home-price gains
“How expensive?” tracks measurements of California’s totally unaffordable housing market.
The pain: Orange County’s home-price appreciation topped a ranking of 30 major US markets.
The source: My trusty spreadsheet reviewed the November home-price report by First American Data & Analytics, which covers 30 US metro areas, including six in California. Not only does the report track one-year price swings, it also slices markets into three price groupings – the costliest luxury houses, more-affordable starter homes and mid-range-priced residences.
The pinch
Not only was Orange County’s 7.7% overall gain No. 1 nationally, it also had the highest mid-range price gains (10.2%) and luxury gains (8.1%).
The only less-painful news for local house hunters was the milder 4.9% increase in starter-home prices. Yet that was still eighth-highest among the 30 big US markets.
Orange County’s mix of weather, ocean and high-paying jobs – plus limited new-home development – has made it an ultra-competitive place to try to buy a home. And the rare house hunters who can afford to buy seem eager to pay up.
How unaffordable is it?
Well, back in 2024’s first quarter, a house hunter would have to make $349,200 annually to comfortably buy the county’s $1.37 million median-priced, existing single-family home, according to stats from the California Association of Realtors.
Pressure points
Here is how First American calculated pricing in five other California markets, where house hunters are less willing to pay up …
San Diego: Prices rose 3.7% in a year overall (No. 10 of the 30). That came from 1.7% starter-home gains (No. 17), 2.8% mid-range gains (No. 16), and 5.8% luxury gains (No. 7).
Inland Empire: Up 2.4% overall (No. 16) – from 1.8% starter gains (No. 16), 3.6% mid-range gains (No. 13), and 3.5% luxury gains (No. 17).
Sacramento: Up 1.9% overall (No. 18) – from 2% starter gains (No. 15), 2.9% mid-range gains (No. 15), and 1.6% luxury gains (No. 24).
Los Angeles County: Up 1.4% overall (No. 22) – from 3.1% starter gains (No. 12), 1.8% mid-range gains (No. 21), and 1.8% luxury gains (No. 22).
Alameda and Contra Costa counties: Off 0.3% overall (No. 29) – from 0.9% starter losses (No. 28), 4.5% mid-range losses (No. 30), and 2.4% luxury gains (No. 19).
Bottom line
Want a bargain? Consider Florida.
November’s biggest one-year loser among the 30 metros was Tampa, where prices were off 3.3% overall.
And among the states, Florida’s 1.3% decline over 12 months was the nation’s second-largest drop. Only South Dakota’s 4.4% dip was worse.
By First American’s math, California was No. 44 for price gains, up only 2.5%. That’s just ahead of No. 45 Texas at 2.4%. Nationally, prices rose 3.9%.
The biggest gains in the past year were found in Wyoming, up 12.3%, Maine, up 9.7%, and Connecticut, up 9.5%.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
Some of my popular tales of 2024 …
- No. 1: It takes $349,200 income to buy OC home, 3.5 times US salary
- No. 2: 20 least-affordable US cities to buy all in California
- No. 3: Pelican Hill switching to Marriott, St. Regis
- No. 4: California has 13 most-unaffordable small US cities
- No. 5: Temecula one of ’50 best places to live in US’
- No. 6: 3 in SoCal among fastest-selling home projects in US
- No. 7: Finally, Bass Pro opens in Irvine
- No. 8: California auto insurance premiums soaring 54% this year
- No. 9: ‘Ziggurat’ building in $150 million-plus bidding war
- No. 10: California’s hardest spot to find an apartment?