UCI

The Economy: Housing

Recent events also appear to have dampened residents' enthusiasm for the Orange County housing as an investment. Positive ratings have declined among both homeowners and renters.

Among local homeowners, 50 percent give buying a home in Orange County favorable ratings, with 11 percent calling it "excellent" and 39 percent saying "good." Thirty-one percent say an Orange County house is a "fair" investment, while 18 percent call it a "poor" one. One percent are unsure.

Two years ago, 59 percent of homeowners gave positive ratings to buying a house in Orange County, with 17 percent calling it an excellent investment. In 1994, a similar 57 percent had given housing an excellent (12%) or good (45%) evaluation.

Local renters are even less optimistic than homeowners, and their ratings have fallen more dramatically. Only 41 percent give favorable ratings to buying a home in Orange County, with 7 percent saying it is an excellent investment and 34 percent saying good. Thirty-two percent call Orange County housing a fair investment and 25 percent say it is poor. Two percent are unsure.

Two years ago, 53 percent of renters said that buying an Orange County home was an excellent (14%) or good (39%) investment. In 1994, 47 percent had given housing an excellent (9%) or good (38%) assessment.

Some of the decline in housing confidence in the past year can be traced to concerns about the bankruptcy.

Of those who say they are very fearful about the effects of the county's financial crisis, only 42 percent say a local home is an excellent or good investment. Of those who are not at all worried, 54 percent give favorable ratings to buying a home here.

Among those who say they have been affected by the bankruptcy, 42 percent call Orange County housing an excellent or good investment, compared to 48 percent of those not affected.

There are also variations by region and income. Residents in the South (53%) and West (52%) are more likely than those in the North (42%) and Central County (41%) to give local housing a favorable investment rating. Those earning more than $50,000 are also more likely to give positive evaluations than are those earning less (51% to 44%). There are no differences by age.

As for housing costs, The median monthly mortgage payment is $919 and the median rent is $730. Sixty-one percent of homeowners and 47 percent of renters pay more than $750 a month for housing.

The past year saw no increases in housing costs. In 1994, 60 percent of homeowners paid more than $750 per month, for a median mortgage of $900. Fifty-one percent of renters paid more than $750 per month, for monthly median of about $750.

The South continues to be the county's most expensive region for housing. Seventy-one percent of South County homeowners and 59 percent of renters pay more than $750 a month for housing. Elsewhere in the county, 56 percent pay mortgages of more than $750 and 43 percent pay rents over that amount.

Lastly, we analyze housing trends at mid-decade. The rate of homeownership is currently 63 percent, compared with 64 percent in 1990. Fifty-nine percent are living in single-family dwellings, about the same as the 60 percent reported in 1990.

Median monthly housing costs have increased by 19 percent for homeowners ($770 to $919) and 1 percent for renters ($720 to $730) from 1990 to 1995. The increased cost of owning a home is attributed to a decline in the number of owners with payments und er $500 per month (40% to 30%), with an equivalent increase in those paying $751 to $1,500 per month (33% to 43%).