New research from The Urban Institute’s MetroTrends, which reports on social and economic trends in urban America, shows that despite a drop in home prices, affordability continues to be a problem for many Americans, especially in coastal metro areas.
According to the MetroTrends data, the share of American households spending more than 30 percent of monthly income on housing costs rose from 30 percent in 2000 to 40 percent in 2008.
The research also showed that residents of coastal communities have been especially affected, particularly those in California, Florida, the Northeast and Mid-Atlantic. According to the report, 12 metro areas in central and southern California have 43 percent or more of their populations spending more than 30 percent of monthly household income on housing costs.
Researchers said that most of the coastal metros suffered a double whammy of unemployment and house price declines, but the impact was particularly severe in Western metros, particularly Los Angeles county, which continues to lead the state in foreclosures.
