Statement by Beverly Barnes, Executive Director of Homes for Working Families, on Q1 2008 Significant Home Price Declines Reported by the National Association of Realtors Today

Market Wire, May, 2008

"Homes continue to remain painfully out of reach for middle-class American families despite the significant price declines reported in two-thirds of the nation's metro areas today by National Association of Realtors.

"In Los Angeles, while home prices declined by 21 percent from the first quarter of 2007 to the first quarter of 2008, a family still must earn an astonishing 230 percent of the area median income to be able to afford a median-priced home. Working families need help to bridge this affordability gap.

"Without greater efforts from policy-makers and business leaders, average working Americans still cannot afford a home in many major U.S. metropolitan markets. Tightened mortgage terms and availability offset recent price declines, thus exacerbating the housing crisis for working families."

Below are the current home "affordability gap" numbers for five major metropolitan areas.

            Median home price (1) Income needed to afford  Median household
                                   median priced home (2)     income (3)

Boston         $ 357,100              $ 103,076              $  68,886
Chicago        $ 249,600              $  72,047              $  53,189
Los Angeles    $ 459,400              $ 132,605              $  57,734
Miami          $ 318,900              $  92,050              $  49,824
Seattle        $ 372,300              $ 107,464              $  66,264

About Homes for Working Families

Homes for Working Families is a national, nonprofit organization dedicated to advancing policy changes that make safe, good-quality homes affordable for America's working families. For more information visit www.homesforworkingfamilies.org .

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Contact Information: Kathryn St. John 202-580-6224 Email Contact