Skip to main content

Less Than One-Third of Californians Can Afford Median-Price Homes

Phil Hall
Aug 09, 2019
Photo credit: Getty Images/Andrei Stanescu

Thirty percent of California households were able to afford a $608,660 median-priced home during the second quarter, according to new data from the California Association of Realtors (CAR). This is down from 32 percent in the first quarter but up from 26 percent one year ago.
 
California households needed a minimum annual income of $122,960 to make monthly payments of $3,070, which covers principal, interest and taxes on a 30-year fixed-rate mortgage at a 4.17 percent interest rate. On the condo side of the market, 40 percent of the state’s homebuyers were able to purchase a $475,000 median-priced condo or townhome, and an annual income of $95,960 was required to make a monthly payment of $2,400 for that type of housing.
 
Compared with California, 55 percent of the nation’s households could afford to purchase a $279,600 median-priced home, which required a minimum annual income of $56,480 to make monthly payments of $1,410.
 
Last month, WalletHub issued a report that named Berkeley, Calif. as the least affordable city for first-time homebuyers. California was home to seven of the 10 least affordable cities for property purchasing neophytes, according to the WalletHub analysis.

 
Fifth Third Bank Expands Down Payment Assistance Program

The program will provide up to $3,600 towards a down payment for families with low to moderate income.

Industry News
Jun 09, 2021
Filo Mortgage Launches Low-Rate Guarantee

National mortgage lender Filo Mortgage is offering to beat competitors' pricing by $1,000 with its Low-Rate Guarantee.

Industry News
Jun 08, 2021
FAU Index Shows Where Consumers Should Buy Or Rent

Consumers are better off renting in cities like Dallas, Texas

Industry News
Jun 07, 2021
Verus Title Inc. Expands Into Dallas-Fort Worth Texas

Verus plans to take advantage of the Dallas-Fort Worth market before expanding throughout the state.

Community
Jun 07, 2021
Freddie Mac Multifamily Extends Forbearance Deadline To September

Freddie Mac Multifamily extended the deadline for requesting a new COVID-19 forbearance agreement for its Multifamily loans to September 30, 2021.

Industry News
Jun 04, 2021
Fannie Mae Launches 'Your Own Story' To Educate Future Homebuyers

Fannie Mae is seeking to help demystify the homebuying process for future homeowners with “Your Own Story.” A new campaign to educate future homebuyers on the entire process.

Industry News
Jun 04, 2021