Housing affordability for Californians improved slightly during 2025, according to a new data report from the California Association of Realtors (CAR).
California households needed a minimum annual income of $221,200 needed to qualify for the purchase of an $875,550 statewide median-priced, existing single-family detached home in 2025. Last year’s California median income for all households totaled $103,312. CAR noted the monthly payment, including taxes and insurance on a 30-year, fixed-rate loan would be $5,530, assuming a 20% down payment and an effective composite interest rate of 6.71%.
CAR determined that 19% of all Californians earned the minimum income necessary to buy a median-priced, detached home in 2025, compared to 18% in 2025. Within the state’s racial and ethnic demographics, the share of Asian households earning enough to purchase a median-priced home increased to 29%, a one-percentage point gain from the previous year, and White (non-Hispanic) household affordability also accelerated one percentage point to 23%.
Affordability among both Black and Hispanic households increased to 11% in 2025, up from 10% one year earlier. CAR’s report warned that “without significant intervention, these structural disparities could widen if interest rates remain elevated and home prices continue to rise.”
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