Since Point Reyes Station was founded in 1875, the town traditionally has been considered a working class community populated by people who worked in local businesses or on nearby ranches.

But escalating home and land prices in the past 20 years have reached the point where most working class people can no longer afford housing in Point Reyes Station.

Sales figures show the average price of houses in Point Reyes Station has risen by an average of 9.1 percent per year over the past 20 years, nearly twice as fast as the nationwide 5.2 percent annual increase during that time.

In unadjusted dollars, houses here cost more than five times more in 1997 as they did in 1977. Taking inflation into account, home prices in real terms have roughly doubled.

So far this year, five houses have sold in town at an average price of about $300,000, with the least expensive closing at $170,000, said Joe Soule, a broker at Coastal Marin Real Estate.

That 800-square-foot, $170,000 house would cost the buyer $1,158 per month, assuming a 20-percent down payment ($34,000) and a 30-year mortgage at 7.5 percent interest, said Shirley Peck, the Bank of Petaluma's mortgage broker.

The monthly total includes the mortgage payment, property taxes, and homeowner's insurance, Peck said.

The cheapest house in 1977 sold for about $30,000.

The three homes that have sold this year for less than $250,000 are all 1,100 square feet or less and are more than 50 years old, with one officially listed as a "fixer-upper."

To afford a $300,000 home, a couple would need a combined monthly income of $5,200, Soule said. "If a husband and a wife have good jobs, they can afford to buy a house in Point Reyes," he said, noting that few jobs here pay that kind of money.

With moderate-sized houses costing at least $1,500 a month in mortgage and taxes, it has even become impractical for homeowners to cover house payments by renting rooms to boarders, said Don Pidd, a broker at West Marin Real Estate.

"You couldn't rent a bedroom and bathroom for anywhere near that figure," he said. "It's not even close."

Although vacation rentals can command substantial amounts, Pidd noted, the seasonal income is too unreliable to depend on for regular mortgage payments.

Still, the town continues to attract young couples looking for a place to settle down. Angie Stanley, an employee at Outdoor Adventures, and her husband, Art Harvey, moved to this area five months ago, looking "for a change."

Enticed by the ocean and the area's open space, the couple sold their three-bedroom house in Colorado, but Stanley, 29, said they can't afford to buy a house here. The pair currently lives in Petaluma and are considering moving north.

The lack of affordable housing needs to be addressed so that younger families keep the population diverse, said Michael Mery, a longtime Point Reyes Station resident.

As perhaps a symptom of that trend, enrollment at West Marin School has dropped from 256 students in June 1995 to 196 students in June of this year.

Noting the recent enrollment drop, Mery commented, "It would be a shame if West Marin were to turn exclusively into a place for gray-haired, rich people."

One possible solution, however, has been floating around town - the creation of an affordable housing complex between Mesa Road, the school, the Coast Guard property on land owned by Toby Giacomini.

The idea - little more than a suggestion at this point - is for the construction of maybe 20 small homes priced at $200,000 or less, a like number of apartments, and perhaps a package sewage-treatment system.