Housing affordability in California fell to its lowest point in 15 years during the second quarter of 2022, the result of higher home prices and interest rates, according to data released today.
Only 16 percent of the state’s households could afford the median price of a home – $883,370 – down from 24 percent in the first quarter and 23 percent year-over-year, the California Association of Realtors reported.
A minimum annual income of nearly $200,000 was needed to make monthly payments of $4,980 on a 30-year fixed-rate mortgage.
Those numbers include principal, interest, and taxes.
The state’s condominium-townhouse market was a little more encouraging: one-fourth of the state’s prospective homebuyers could pay the $677,000 median price in that category, if they had a yearly income of at least $152,800 to cover monthly payments of $3,820.
In the Inland Empire, 24 percent of all households during the second quarter could afford the median-priced single-family home – $585,000 – down from 31 percent in the first quarter and 36 percent year-over-year, the Los Angeles trade association reported.