Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
722,032+456
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
7.02%0.01

Few California home shoppers can afford average-priced homes

CAR: Income needed to buy a home ticks higher

California’s infamous housing situation isn’t getting any better, with the number of people that can afford that Golden State’s averaged-priced home dropping even lower.

According the California Association of Realtors’ Traditional Housing Affordability Index, only 29% of California households could afford to purchase the $553,260 median-priced home in the second quarter of 2017. This is down from 32% in first-quarter 2017 and down from 31% in second-quarter 2016.

The drop also marks the 17th consecutive quarter that the index has been below 40% and the lowest since third-quarter 2015.

To put it in perspective, California’s housing affordability index hit a peak of 56% in the first quarter of 2012.

The chart below gives an overview of the housing affordability index.

Click to enlarge     

home prices

(Source: CAR)

As far as income goes, residents would need to make a minimum annual income of $110,890 in order to qualify for the purchase of a $553,260 statewide median-priced, existing single-family home in the second quarter of 2017.

Assuming a 20% down payment and an effective composite interest rate of 4.09%, the monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,770. 

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please