Q4 California Housing Affordability Improved Slightly – NMP Skip to main content

Q4 California Housing Affordability Improved Slightly

Feb 13, 2019
The Building Industry Association of Southern California (BIASC) has introduced the California Investor Report

A seasonal decline in home prices enabled more opportunities for affordable homeownership in California from the third quarter to the fourth quarter of 2018, according to data from the California Association of Realtors (CAR).
 
The percentage of homebuyers who could afford to purchase a median-priced, existing single-family home in California increased from 27 percent in the third quarter to 28 percent in the fourth quarter. However, higher interest rates during 2018 accounted for the drop from the 29 percent level in the fourth quarter of 2017. CAR's Traditional Housing Affordability Index has been below 30 percent for six of the past eight quarters—it peaked at 56 percent in the first quarter of 2012.
 
CAR added that a California resident needed a minimum annual income of $122,340 to qualify for the purchase of a $564,270 statewide median-priced, existing single-family home in the fourth quarter. Housing affordability improved year-over-year in the fourth quarter in 10 California counties but declined in 30 counties, with the remaining eight registered flat activity.

 
About the author
Published
Feb 13, 2019
Strong Jobs Report Threatens Mortgage Rate Rally

October hiring more than doubled expectations, pushing Treasury yields higher

Nov 06, 2026
Fed Holds Rates, But Pricing Pressures Persist

Rising Treasury yields and fresh inflation data complicate rate locks, borrower qualification, and lender margins as markets anticipate another hike in December

Oct 29, 2026
Zippy Adds Capital For Manufactured-Home Lending Push

The $20 million investment from Saluda Grade will support expansion beyond 27 states and new loan products across wholesale, retail, and community channels

Oct 16, 2026
Inflation Hits 3.7%, Putting Mortgage Rate Relief At Risk

September’s inflation pickup puts recent rate improvements at risk, potentially eroding affordability gains from lower home prices and seller concessions

Oct 14, 2026
PLACE Acquires Ardley, Expanding Push To Turn Existing Borrowers Into New Loans

The latest deal connects borrower retention technology with Maxwell's origination platform and PLACE's real estate network, creating new opportunities for lenders

Oct 09, 2026
Equifax, TransUnion Launch New Tools To Cut Credit Report Costs

Both bureaus introduce ways to purchase credit scores separately from reports, while Equifax reports growing VantageScore adoption and extends $1 pricing through 2028

Oct 09, 2026