BAKERSFIELD, Calif. (KGET) — The home price-to-income ratio is an indicator of home affordability in a given area. And in Bakersfield, that ratio is 5.4, which is higher than the national average.
The national average ratio is 4.7.
As inflation continues to cause the cost of living to rise, wages have been unable to keep up, with housing being the largest single monthly cost for many.
According to a recent study done by Construction Coverage, the median home price in Bakersfield is $335,817 with the median household income being $62,402 per year.
Other living costs inflation is impacting include groceries, energy and transportation, but the gap between wage growth and home price growth in increasing the fastest.
Over the past five years, the study said Bakersfield saw a 49.6 percent rise in median home prices, with 32.3 percent of resident spending more than the suggested amount of 30 percent of their household income on housing.
Over the last year, housing prices in the U.S. have increased by more than 18 percent while the growth of household income has lagged behind, according to the study.
From 2000 to 2020, the median home price in the U.S. increased by 96 percent while the median income in the U.S. increased by only 61 percent, according to data from the U.S. Census Bureau and Zillow.
As a state, California has the second highest average home price-to-income ratio at 8.9 behind Hawaii (9.4). The study also showed the top five most expensive large metros in the U.S. were all located in California. According to the study, states and cities with high ratios have long running issues with affordable housing.
Source: KGET 17