Only 15% of California households during the fourth quarter of 2023 were able to afford the state’s $833,170 median-priced home, according to new data from the California Association of Realtors (CAR). This was unchanged from the third quarter 2023 (when the affordability rate hit a 16-year low) and down from 17% in the fourth quarter of 2022.
CAR noted that a minimum annual income of $222,800 was needed to make monthly payments of $5,570, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 7.39% rate.
The organization also highlighted that 22% of home buyers were able to purchase the $650,000 median-priced condo or townhome. A minimum annual income of $174,000 was required to make a monthly payment of $4,350 for these types of properties.
CAR added that when compared with California, more than one-third of the nation’s households could afford to purchase a $391,700 median-priced home, which required a minimum annual income of $104,800 to make monthly payments of $2,620.
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The left leaning legislature and the local public agencies of California need to un-legislate the last 50 years morass of laws and ordinances respectively that has strangled the creation of the same priced housing enjoyed by other states.