According to the latest report from the California Association of Realtors (C.A.R.), housing affordability in California has reached its lowest level since 2007. With rising borrowing costs and home prices, only 15% of home buyers were able to afford a median-priced single-family home in Q3 of 2023. This is a decline from both the previous quarter and year, with affordability now at less than one-third compared to its peak high in Q1 of 2012.
In contrast, over one-third of households across the nation could afford a median-priced home valued at $406,900. This required an annual income of $106,800 for monthly payments totaling $2,670. However, this nationwide affordability was also down from last year’s figure by four percentage points.
The decrease in housing affordability highlights ongoing challenges for potential buyers looking to enter or move within California’s real estate market. As borrowing costs continue to rise and prices remain high, it may become increasingly difficult for individuals or families with lower incomes to purchase homes within their desired areas.
