Humboldt Housing Prices Skyrocketing
from Eureka Times-Standard

"Approximately 13 percent of Humboldt County residents can afford to buy a home."
[...]
"In Arcata, June's average home price jumped to $395,000, up from $302,500 in June of last year. For families financing a current Arcata home loan, a qualifying annual income would have to be at least $90,428. Ten percent of Arcata residents can afford to buy a home, the report states, with a median household income of $37,742."
from Humboldt housing: Fewer residents can afford a home, Ann Johnson-Stromberg, Eureka Times-Standard, 8/12/05

When I first read this, I thought: "Wow! Humboldt County is being invaded by Massholes!" For those who don't know what a Masshole is, it is a New Hampshire term for people from the Metro Boston area who moved to the southern part of their state yet continue to commmute down to "the city." They take advantage of all of the amenities afforded by New Hampshire- tax free-living, land to build on, yet do not give anything back to their new state.

This is a great place to live, but only if you want to be part of the community here. It is located 300 miles from either San Francisco or Portland, so you would never be able to make a "commute." Is Humboldt County (total pop. 125,000) growing at a staggering rate, or is it caught up in the nationwide real estate bubble? I have not seen too many subdivisions going up, nor do I think people would stand for Humboldt being turned into some sort of Southern California redux. So who is buying all these houses?

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Humboldt housing: Fewer residents can afford a home
Ann Johnson-Stromberg
Eureka Times Standard

Approximately 13 percent of Humboldt County residents can afford to buy a home. New figures released by Humboldt Association of Realtors this week paint an increasingly dismal picture of what many find to be the reality of area housing when looking to purchase a home.

In Arcata, June's average home price jumped to $395,000, up from $302,500 in June of last year. For families financing a current Arcata home loan, a qualifying annual income would have to be at least $90,428. Ten percent of Arcata residents can afford to buy a home, the report states, with a median household income of $37,742.

McKinleyville home prices in June were averaging $351,500, up from $262,000 in June 2004. Twelve percent of McKinleyville residents could afford a home with a loan qualifying annual income of $80,469. McKinleyville's median household income is approximately $45,409.

Fortuna home prices in June averaged $311,500, up from $269,700 in June of last year. Thirteen percent of the city's residents can afford a home with the loan qualifying annual income of $71,312. Fortuna's median household income is approximately $37,153.

Eureka home prices in June averaged $317,000, up from $252,500 the same time last year. Thirteen percent of Eureka residents can afford a home with the loan qualifying annual income of $72,571. Eureka's median household income is $38,736.

The question many county residents are asking is, will the housing market become more affordable?

"Well, if our area is like others in California, the answer is no," said county Director of Community Development Services Kirk Girard. "In some cases there is localized recession that helps home prices, but in general the prices continue to climb."

Girard said his department has taken a close look at how to improve the situation for working families that are being priced out of the market and is working to develop programs that will provide more options. First-time home buyers programs, a low-income and senior subsidized rental program, and a program developing for subsidized housing for home owners are all helpful, Girard said. Other areas the department is working on, is making sure there is sufficient land base available for future housing construction.

Girard said that Humboldt is not alone in it's affordable housing boat, and said that this year, areas like Sonoma County are enjoying a 7 percent affordability index for its residents.

"Our rate of housing appreciation is on par with the rest of the state, but it hurts us more significantly because our median incomes are not as high," he said. "On the other hand, home ownership rates in the county are relatively high and all of this housing appreciation can benefit you."

According to census data in 2000, California enjoyed a 57 percent resident home ownership rate and Humboldt County's rate was 58 percent.

posted by santo26 | 02:49 PM