Laserfiche WebLink
PLANNING CONTEXT <br />HOUSING PRICES AND AFFORDABILITY <br />Housing Prices and Rents <br />This decade has seen unparalleled increases in housing prices and rents. Fueled <br />by historically low interest rates, overly flexible lending, and pent -up demand for <br />housing, the prices of single - family homes soared. Between 2000 and 2007, the <br />median sales prices increased by 300 percent; since then housing prices have <br />fallen by about 50 percent. The recent market decline has caused prices of single - <br />family homes to drop to $350,000 and condominium prices to drop to $150,000 <br />(2012 price levels). During the next 3 years, demand is expected to be stronger. <br />$700 A Single - family <br />Chart 10: Housing Price $600 <br />Trends in Santa Ana <br />Prices in Thousands of Dollars $500 <br />Source: DataQuick, 2013. <br />$400 <br />$300 <br />$200 <br />$100 <br />$0 <br />2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 <br />Meanwhile, the market for rental apartments has remained more stable. Over the <br />past decade, apartment rents in Santa Ana have generally risen in line with <br />inflation, increasing by approximately 40 percent during 2000 to 2007 compared <br />with inflationary increases of 35 percent. Since 2007 home sales prices have <br />dropped, however, rental prices have outpaced inflation, making renting less <br />affordable over the past decade. Although the housing market and economic <br />downturn have created more lending barriers for new apartment construction, <br />demand for apartments is still strong. <br />J�A <br />18 CITY OF SANTA ANA GENERAL PLAN HOUSING ELEMENT <br />