Housing affordability in California hit a 16-year low in the second quarter of 2023, according to new figures released by the California Association of Realtors.
The startling numbers come as interest rates continue to stagnate above 6% and home prices remain inflated due to a lack of inventory.
The data show that fewer than one in five people, 16% to be exact, can afford to purchase a median-priced existing single-family home in the Golden State. Those second-quarter numbers are down from 19% in the first quarter of 2023.
For comparison, in the first quarter of 2012, the percentage of home buyers who could purchase a median-priced single-family home in California was as high as 56%.
Equally surprising, the CAR numbers indicated that a minimum income of $208,000 was needed to qualify to purchase a median-priced home, which costs around $830,000.
And if you can qualify for the mortgage, you can expect monthly payments of around $5,200, assuming you put forth 20% for the standard down payment and qualified for an interest rate of around 6.6%.
Condos and townhomes in California are less expensive than they were a year ago, but again prices have gone up in the second quarter of 2023. The CAR found that only 25% of Californians could afford a condominium or townhome in the second quarter of 2023, requiring an annual income of more than $160,000 with monthly payments of around $4,000 on a median-priced unit.
The California Association of Realtors tracks home affordability and its quarterly reports are considered a “fundamental measure of housing well-being for home buyers in the state,” the association says.
Meanwhile, in the rest of the nation, more than one-third of Americans could afford to purchase a median-priced home, needing an annual income of just north of $100,000 with payments of around $2,500.
Not all areas of California are unattainable for the average resident, the CAR data shows. In Lassen County, the most affordable county in the state, around 52% of residents can afford to purchase a home. It was the only county in California with an affordability rating higher than 50%.
Siskiyou, Plumas, Shasta and Tehama counties rounded out the top five most affordable counties.
The least affordable counties in California are the usual suspects. Mono County, home to Mammoth Lakes, is the least affordable county in the state, with only 5% of residents able to qualify for a home purchase. Santa Barbara (10%), San Luis Obispo (11%) and Monterey and Orange County (12%, respectively), close out the top five.
Los Angeles County came in at 15% in the housing affordability index. San Bernardino County was the most affordable county in Southern California, with an affordability rating of 30%.
The complete breakdown of California’s Housing Affordability Index from the California Association of Realtors is below:
| STATE/REGION/COUNTY | Qtr. 22023 | Qtr. 12023 | Qtr. 22022 | Median Home Price | Monthly Payment Including Taxes & Insurance | Minimum Qualifying Income | ||
| Calif. Single-family homes | 16 | 19 | r | 17 | r | $830,620 | $5,200 | $208,000 |
| Calif. Condo/Townhomes | 25 | 26 | 25 | $640,000 | $4,010 | $160,400 | ||
| Los Angeles Metro Area | 17 | 19 | 17 | $760,000 | $4,760 | $190,400 | ||
| Inland Empire | 22 | 24 | 24 | $570,000 | $3,570 | $142,800 | ||
| San Francisco Bay Area | 19 | 21 | 18 | $1,300,000 | $8,150 | $326,000 | ||
| United States | 36 | 40 | 38 | $402,600 | $2,520 | $100,800 | ||
| San Francisco Bay Area | ||||||||
| Alameda | 16 | 18 | 15 | $1,275,000 | $7,990 | $319,600 | ||
| Contra Costa | 23 | 29 | r | 23 | r | $900,000 | $5,640 | $225,600 |
| Marin | 16 | 20 | 17 | $1,770,000 | $11,090 | $443,600 | ||
| Napa | 19 | 20 | 16 | r | $855,000 | $5,360 | $214,400 | |
| San Francisco | 20 | 21 | 17 | $1,611,000 | $10,090 | $403,600 | ||
| San Mateo | 17 | 19 | 15 | $2,012,500 | $12,610 | $504,400 | ||
| Santa Clara | 18 | 21 | 18 | $1,800,000 | $11,280 | $451,200 | ||
| Solano | 26 | 28 | 28 | $592,750 | $3,710 | $148,400 | ||
| Sonoma | 16 | 18 | 17 | $850,000 | $5,330 | $213,200 | ||
| Southern California | ||||||||
| Los Angeles | 15 | 17 | 16 | $789,400 | $4,950 | $198,000 | ||
| Orange | 12 | 12 | 12 | $1,250,000 | $7,830 | $313,200 | ||
| Riverside | 20 | 22 | 21 | $625,000 | $3,920 | $156,800 | ||
| San Bernardino | 30 | 30 | 30 | $456,500 | $2,860 | $114,400 | ||
| San Diego | 13 | 15 | 14 | $942,350 | $5,900 | $236,000 | ||
| Ventura | 14 | 17 | 15 | $915,000 | $5,730 | $229,200 | ||
| Central Coast | ||||||||
| Monterey | 12 | 12 | 13 | $865,370 | $5,420 | $216,800 | ||
| San Luis Obispo | 11 | 12 | 12 | $880,000 | $5,510 | $220,400 | ||
| Santa Barbara | 10 | 15 | 10 | $1,195,000 | $7,490 | $299,600 | ||
| Santa Cruz | 13 | 14 | 13 | $1,270,000 | $7,960 | $318,400 | ||
| Central Valley | ||||||||
| Fresno | 29 | 32 | 31 | $420,000 | $2,630 | $105,200 | ||
| Glenn | 32 | 32 | 36 | $349,000 | $2,190 | $87,600 | ||
| Kern | 31 | 33 | 32 | $380,000 | $2,380 | $95,200 | ||
| Kings | 32 | 33 | 39 | $361,000 | $2,260 | $90,400 | ||
| Madera | 31 | 34 | 32 | $423,000 | $2,650 | $106,000 | ||
| Merced | 31 | 32 | 34 | $390,000 | $2,440 | $97,600 | ||
| Placer | 29 | 31 | r | 27 | $667,000 | $4,180 | $167,200 | |
| Sacramento | 26 | 29 | 27 | $530,000 | $3,320 | $132,800 | ||
| San Benito | 19 | 23 | 17 | $755,140 | $4,730 | $189,200 | ||
| San Joaquin | 26 | 27 | r | 25 | r | $530,000 | $3,320 | $132,800 |
| Stanislaus | 27 | 30 | r | 28 | $460,000 | $2,880 | $115,200 | |
| Tulare | 33 | 37 | 34 | $370,000 | $2,320 | $92,800 | ||
| Far North | ||||||||
| Butte | 29 | 32 | 28 | $434,950 | $2,730 | $109,200 | ||
| Lassen | 52 | 53 | 54 | $249,000 | $1,560 | $62,400 | ||
| Plumas | 38 | 42 | 32 | $356,000 | $2,230 | $89,200 | ||
| Shasta | 35 | 39 | 36 | $389,000 | $2,440 | $97,600 | ||
| Siskiyou | 39 | 41 | 30 | $279,500 | $1,750 | $70,000 | ||
| Tehama | 35 | 40 | 33 | $350,000 | $2,190 | $87,600 | ||
| Other Calif. Counties | ||||||||
| Amador | 28 | 33 | r | 32 | $461,890 | $2,890 | $115,600 | |
| Calaveras | 27 | 32 | 29 | $490,000 | $3,070 | $122,800 | ||
| Del Norte | 30 | 32 | 31 | $365,000 | $2,290 | $91,600 | ||
| El Dorado | 23 | 28 | 24 | $699,000 | $4,380 | $175,200 | ||
| Humboldt | 25 | 26 | 24 | $438,000 | $2,740 | $109,600 | ||
| Lake | 28 | 31 | 33 | $357,000 | $2,240 | $89,600 | ||
| Mariposa | 24 | 25 | 22 | $390,000 | $2,440 | $97,600 | ||
| Mendocino | 17 | 26 | 15 | $520,000 | $3,260 | $130,400 | ||
| Mono | 5 | 7 | 6 | $980,000 | $6,140 | $245,600 | ||
| Nevada | 25 | 29 | 25 | $557,500 | $3,490 | $139,600 | ||
| Sutter | 33 | 36 | r | 31 | $425,000 | $2,660 | $106,400 | |
| Tuolumne | 32 | 36 | 33 | $418,300 | $2,620 | $104,800 | ||
| Yolo | 23 | 28 | 23 | $625,000 | $3,920 | $156,800 | ||
| Yuba | 26 | 28 | 28 | r | $444,950 | $2,790 | $111,600 |
r = revised
The California Association of Realtors calculates its Housing Affordability Index utilizing composite interest rates. For more on the methodology and additional details, click here.