State housing affordability improves slightly

Single-family homes became slightly more affordable in California during the fourth quarter of 2021, thanks to a mild leveling of prices and a growth in personal income.

Twenty-five percent of the state’s households could afford the $797,470 median-priced home during the last three months of last year, according to data released Thursday by the California Association of Realtors.

That was up from 24 percent in the third quarter, but a two percent decline year-over-year.

An annual income of at least $148,000 was needed to to make monthly payments of $3,700, on a 30-year fixed-rate mortgage at a 3.28 percent interest. That estimate includes principal, interest and taxes.

Thirty-six percent of California home buyers were able to purchase a median-priced condominium or townhome – $610,350 – during the last three months of 2021. That required a minimum annual income of $113,200 for monthly payments of $2,830.

During the fourth quarter, 41 Calfornia counties experienced a year-over-year drop in housing affordability, six increased year-over-year, and four remained the same.

In the Inland Empire, the median home price in the fourth quarter was $530,000, and 35 percent of the households in the two-county region could afford that price. That was a one percent drop from the third quarter but a six percent decline year-over-year, according to the association.