California housing affordability remains stuck at just 19%

Key Points:

• California's housing market remains extremely unaffordable, with only 19% of households able to afford a median-priced single-family home in the third quarter, according to the California Association of Realtors (C.A.R.).
• The minimum qualifying income to buy a typical home in California hit $228,000 annually, unchanged from the previous quarter and $4,400 higher than a year ago, while monthly mortgage payments averaged $5,700.
• Despite a slight dip in home prices, elevated mortgage rates have kept overall costs high, with California's monthly housing payments more than double the national average of $2,760.
• Southern California faces particularly severe affordability challenges, with median home prices and required incomes varying widely; for example, Orange County's median home price reached $1.47 million, requiring an annual income of $374,400.
• The affordability crisis shows little improvement, as mortgage rates are expected to remain high due to persistent inflation, further limiting the purchasing power of prospective buyers in California.