The affordability gap for Black and Hispanic households seeking homeownership in California continues to remain behind other ethnic demographics, according to a new data report from the California Association of Realtors (CAR).
During 2024, less than one-fifth (18%) of all Californians earned enough income to afford an $865,440 statewide median-priced detached home, down slightly from 19% in 2023. Along ethnic demographics, only 10% of Black California households and 9% of Hispanic households were able to afford a median-priced home, unchanged from the previous year. In comparison, 21% of White households and 27% of Asian households could afford a median-priced home, down from 23% and 29% in 2023, respectively.
CAR noted a minimum annual income of $221,200 was needed to make monthly payments of $5,530 on a median-priced home, assuming there is a 20% on the property and the borrower is paying an effective composite interest rate of 6.84%. The 2024 California median income for Whites was $111,680, $128,720 for Asians, $82,660 for Hispanics/Latinos and $70,220 for Black households — an income gap of nearly 30% that of the overall population, which was $99,310.
CAR noted that at the national level, 54% of Asian households and 41% of non-Hispanic White households could afford to buy a US median-priced single-family home last year. Meanwhile, only 32% of Hispanic households and 24% of Black households could afford to buy a US median-priced home.
