Income vs House Value in Irvine (Orange, Mission Viejo: real estate, foreclosure, rent)

[Socalpal]

~10% of Irvine's population go to UCI this probably brings the numbers down a bit. A lot of people who buy in Irvine are move up buyers who lived in other areas of Southern California. There is also a huge rental population in Irvine.

[CAVA1990]

Originally Posted by pacific2

Sorry, but I didn't mean to upet you. Link please since you just suspect this to be the case?

Dropping all of the emotions, the OP's point was that he found the median income in Irvine to be just under $100,00, while the median home price is about $700,000. He asked a perfectly resonable question in wondering how people could afford homes of that price on such a relatively low income.

That's an area for certain types of folks, like here, and if you don't fit that profile there are plenty of other options in Southern Cal, like San Bernardino and Riverside Counties or even North Orange County, just like here where you can live further away from DC.

What the...? You make a lot of assumptions without even knowing me; unless you mean the "general you."

I meant the "general you", not anyone specifically. I believe I explained above that the income of existing homeowners is irrelevant since prices are based on the income of homebuyers. Unfortunately I don't believe there's any data kept on that so we'll probably just have to stick with our mutual suspicions.

[Charles]

Originally Posted by Don9

I would agree with that but I don't think the current home prices will last much longer.

Prices did drop (2006-2009) but it seem like it has flattened out over the past couple years.

Median Sales Price/sqft, SFR in Irvine

[Charles]

Originally Posted by EscapeCalifornia

$94k is the median household income, not per person.

Originally Posted by Don9

Nope, the median household income is just what it means ... combined income. It's probably a little higher now but still not enough for a 600K home with 20% down.

Nope? Sounds like you are agreeing with what he wrote.

Isn't

"$94K is the median household income"

referring to the same metric as

"the median household income is just what it means ... combined income." ? (Did you misread and were accidentally thinking "per capita income" which is income divided by number of people?)

Also, median household income isn't the same as average household income. Median means have the values are below and half are above.'

So, if there are 25 homes, and 23 sell for $500K, and two sell for $30M and $20M, the median sales price is $500K but the average sales price is $2.46M.

Another thing to consider is %owner occupied. If a city has a significantly higher or lower %occupied (and I didn't check for Irvine), then that could produce relationships between income and house values which would appear to conflict.

So, tying this all together, if a city had a lot of renters in proportion to homeowners and the renters all made $40K but the homeowners made $200K (living in $1M homes), then that might shake out to the $94K income with $680K homes the original poster brought up. Maybe the presence of UC Irvine and all the college students living in Irvine affects this...not sure..

[CAVA1990]

Originally Posted by Charles

So, tying this all together, if a city had a lot of renters in proportion to homeowners and the renters all made $40K but the homeowners made $200K (living in $1M homes), then that might shake out to the $94K income with $680K homes the original poster brought up. Maybe the presence of UC Irvine and all the college students living in Irvine affects this...not sure..

That makes a lot of sense. I imagine the college student renters, if they're counted in the household income stats, would drag things down some.

[EscapeCalifornia]

Originally Posted by CAVA1990

That makes a lot of sense. I imagine the college student renters, if they're counted in the household income stats, would drag things down some.

If they're counted at all. UCI is a big commuter school so lots of students live elsewhere in OC. Of the ones who are living in Irvine, how many are supported by their families in other counties, states, or countries and aren't official Irvine residents?

[Count David]

Originally Posted by EscapeCalifornia

Of the ones who are living in Irvine, how many are supported by their families in other counties, states, or countries and aren't official Irvine residents?

If they are regularly residing in Irvine upon the census count, they are counted. I'm showing 17.3% of Irvine residents enrolled in college or grad school (not necessarily UCI).

I also see a median household income of $84,950. And a median family income number of $102,681 (this should weed out the singles and college students).

[Charles]

Originally Posted by David Aguilar

I also see a median household income of $84,950. And a median family income number of $102,681 (this should weed out the singles and college students).

What is the difference between these two?

[Count David]

Originally Posted by Charles

What is the difference between these two?

Median household income includes all households.

Median family income only includes households headed by married-couples and other related persons.

In Irvine:
52% of households are headed by married-couples
12% of households are "other" family households
28% of households are people living alone
8% of households are other "non-family" households.

[00molavi]

Originally Posted by CAVA1990

That makes a lot of sense. I imagine the college student renters, if they're counted in the household income stats, would drag things down some.

That's what I said in the second page, nobody pays attention...