Home prices in the Sacramento region rose by 6 percent during the last 12 months, putting many neighborhoods out of financial reach for potential homebuyers, according to a Bee review of industry data.
The median-priced home in the Sacramento region sold for $320,000 in May, according to tracking firm Zillow.com. A local household would need to earn about $85,000 annually to afford a home at that price, assuming they could put down 10 percent.
About two thirds of the region's households make less than $85,000 each year.
Home affordability varies greatly by area. The median-priced home in Roseville costs about twice as much as the median-priced home in North Highlands. And the median-priced home in Granite Bay costs about twice as much as the median-priced home in Roseville.
This map shows where a household, based on its income, could afford to buy the median-priced home in June 2015.
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Assumptions for map: Affordability based on household capacity to purchase median-priced home in each area. Map assumes household makes a down payment equivalent to one-third of annual income; a property tax rate of 1 percent; home insurance payments of $800 per year; 30-year mortgage with a 3.9% interest rate and debt not related to housing equivalent to 8 percent of annual income. Areas shaded green assume a debt-to-income ratio of 30 percent or lower. Areas shaded yellow assume a debt to income ratio of 36 percent or lower.