IE Business Daily Business news for the Inland Empire.
Only 18 percent of California households could afford the median price of a single-family home – $869,300 – during the fourth quarter of 2025, according to the California Association of Realtors.
That was a one percent increase from the third quarter, and up two percent year-over-year, modest improvements the association attributed to a slight drop in home prices and a less competitive housing market.
A minimum annual income of $213,200 was needed to make monthly mortgage payments of $5,330. That includes principal, interest, taxes and insurance on a 30-year fixed-rate mortgage at 6.35 percent interest.
Condominiums and townhomes also remained out of reach for most households at the end of 2025.
Twenty eight percent of the state’s homebuyers were able to purchase a $650,000 median-priced condominium or townhome. A minimum yearly income of $159,200 was required to make a monthly payment of $3,980.
Twenty four percent of all Inland Empire households could afford the $595,000 median home price during the fourth quarter, up one percent from the third quarter, the association reported.
