Friday, September 10, 2004
Economist warns high real estate prices in Ventura County have downside
The California Economic Forecast is warning that high real estate prices in Ventura County could inhibit business growth in county.
As of July, the median value of homes in Ventura County rose more than 36% to $626,510 from $458,600 from the same time last year. At current prices very few people can afford homes in Ventura County, or rent for that matter.
The typical studio apartment requires an annual salary of $35,000, and an average apartment requires a household income of $54,000. Combined with the fact that average annual salaries in Ventura County are about 42,000, it is becoming very difficult for any potential employees to afford to live in Ventura County, forcing potential new businesses to move to more affordable areas.
While most are not predicting any sort of major crash – in the short term – a long term concern becomes the viability of the area to support its residents with employment, forcing residents to continue the long, traffic-riddled journey to places like Los Angeles. Over time, this might force a significant revaluation of real estate values in Ventura County.
As of July, the median value of homes in Ventura County rose more than 36% to $626,510 from $458,600 from the same time last year. At current prices very few people can afford homes in Ventura County, or rent for that matter.
The typical studio apartment requires an annual salary of $35,000, and an average apartment requires a household income of $54,000. Combined with the fact that average annual salaries in Ventura County are about 42,000, it is becoming very difficult for any potential employees to afford to live in Ventura County, forcing potential new businesses to move to more affordable areas.
While most are not predicting any sort of major crash – in the short term – a long term concern becomes the viability of the area to support its residents with employment, forcing residents to continue the long, traffic-riddled journey to places like Los Angeles. Over time, this might force a significant revaluation of real estate values in Ventura County.
