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Think homes are costly? You're right Area rates fith on list as least affordable to buy By David Preszler High housing prices and low median wages combined to make the Medford-Ashland area the fifth least affordable place to buy a house in the country for the fourth quarter of 1998. Oregon's other cities weren't much better. The state's three other metropolitan areas -- Portland-Vancouver, Eugene-Springfield and Salem -- all ranked in the top 15 least affordable places to buy a house, according to statistics released this week by the National Association of Home Builders. The study ranked 186 metro areas around the country. The rankings, called the housing opportunity index, look at the median income and the median prices of home sales in an area to determine the percentage of homes that are affordable for those making the median income. "The real purpose is to see how metro areas compare to one another," said Andrew Kochera of the NAHB. "If you are a family earning the median income, how much of the market is open to you?" About 38.5 percent, if you were looking to buy in the Medford-Ashland area during the last three months of 1998. The average home sale price in the Medford-Ashland area was $125,000 and the median income was $38,000. Nationally, 66.2 percent of the houses were available to median-income families. The national median income was $45,300, and the median home sale price for the fourth quarter was $136,000. Medford-Ashland was first included on the national lists in the first quarter of 1998, Kochera said. It debuted as the ninth least affordable with 41 percent of the houses sold available to those making the median. The percentage was 37.5 for the second quarter of 1998 and 40.6 for the third. The lack of affordable housing has been an issue in Medford and Ashland for several years and shows little sign of improving. "The problem has increased over time," said Rich Humphrey, managing broker at one of the valley's largest realty firms, Coldwell Banker ProWest Real Estate. "The job growth isn't that good compared to the population growth and so far the salaries that the new jobs pay aren't high-paying salaries." The high rating underscores a reality for many families here: Without two incomes, buying a house is extremely difficult. Jon Gail, home-ownership program manager for the state's Housing and Community Services Department, noted that a decade ago Oregon was among the nation's most affordable states to buy a home in based on median prices. That began to change in the early 1990s. In 1991, Portland's median price was $80,000 -- well below the national median of $100,000. Median home sale prices in the Portland area were $155,000 for the fourth quarter of 1998, well above the national median of $136,000. The other three Oregon metro areas remain below the national price median. But they have also seen sharp increases. In 1991, Medford-Ashland's median price was $79,000, Eugene's $67,000 and Salem's $66,500. Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA