Only 15% of Q4 California Homebuyers Could Afford a Median-Priced Home

Only 15% of California homebuyers could afford to purchase a median-priced, existing single-family home in the state during the fourth quarter of 2024, according to the latest data from the California Association of Realtors’ Housing Affordability Index. This is down slightly from 16% in the previous quarter and unchanged from one year earlier.

A minimum annual income of $222,000 was needed to qualify for the purchase of a $874,290 statewide median-priced, existing single-family California home in the fourth quarter. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, was $5,550, assuming a 20% down payment and an effective composite interest rate of 6.76%. The statewide median price of an existing single-family home dipped by 0.7% quarter-to-quarter, although on a year-over-year basis California continued to record price increases for the sixth consecutive quarter.

Only 24% of California households could afford a typical condo/townhome in fourth quarter, down from 25% in the third quarter and up from 22% in the fourth quarter of 2023. An annual income of $170,000 was required to make the monthly payment of $4,250 on the $670,000 median-priced condo/townhome in the fourth quarter of 2024.

Compared with California, 36% of the nation’s households could afford to purchase a $410,100 median-priced home, which required a minimum annual income of $104,000 to make monthly payments of $2,600.