More Californians were able to afford buying a home during the third quarter, according to a data report from the California Association of Realtors (CAR).
Between July and September, 17% of the state’s homebuyers could afford to purchase an $887,380 median-priced, existing single-family home, up from 15% in the second quarter of 2025 and up from 16% in the third quarter of 2024. However, housing affordability in California still hovered near its all-time low.
CAR determined that a minimum annual income of $223,600 was needed to qualify for the purchase of a median-priced, existing single-family home in the third quarter, where the monthly payment (including taxes and insurance) on a 30-year, fixed-rate loan, would be $5,590, assuming a 20% down payment and an effective composite interest rate of 6.67%.
The statewide median price of existing single-family homes in California fell by 2% from the second quarter to the third quarter, but it was also up by 0.8% from one year earlier.
More California households (27%) could afford a typical condo/townhome in the third quarter, rising from 25% both in the previous quarter and one year earlier. An annual income of $163,600 was required to make the monthly payment of $4,090 on the $649,990 median-priced condo/townhome in the third quarter.
Compared with California, more than one-third (36%) of the nation’s households could afford to purchase a $426,800 median-priced home, which required a minimum annual income of $107,600 to make monthly payments of $2,690. Nationwide, affordability edged up from 35% in both the second quarter and the third quarter of 2024.
