California’s housing affordability during the second quarter sank to its lowest levels in nearly 17 years due to elevated home prices and mortgage rates, according to data from the California Association of Realtors (CAR). The second quarter’s level was less than one-third of the affordability index peak of 56% set in the second quarter of 2012.
CAR noted that a minimum annual income of $236,800 was needed to qualify for the purchase of a $906,600 statewide median-priced, existing single-family home in the second quarter. The monthly payment – including taxes and insurance on a 30-year, fixed-rate loan – would be $5,920, assuming a 20% down payment and an effective composite interest rate of 7.10%.
On a year-over-year basis, statewide home prices jumped 9% from the second quarter of 2023. However, during the second quarter the minimum annual income required exceeded $200,000 for the sixth time in seven quarters, setting a new record peak, while the monthly payment for a typical single-family home in California also hit a record high.
CAR also reported the share of California households that could afford a typical condo/townhome in second quarter fell to 22%, down from 24% in the previous quarter and down from 25% one year earlier. An annual income of $180,000 was required to make the monthly payment of $4,500 on the $690,000 median-priced condo/townhome in the second quarter of 2024.
Compared with California, about one-third of the nation’s households could afford to purchase a $422,100 median-priced home, which required a minimum annual income of $110,000 to make monthly payments of $2,750. Nationwide affordability was down from 36% one year ago.
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The most polluted. Expensive. Old. Bad crime state in the country. I don’t think it’ll ever be corrected. It’s really sad this place that was once so cool is such a dump.
Agreed. Bad governance costs.
Newson just announced a new bill to give over one Billon to the homeless. They still cant account for over 40% of the last homeless fund they scammed from the voters. Meanwhile homeless camps are expanding.