Housing affordability in California remained at a 16-year low during the fourth quarter of last year, the result of not enough homes being put up for sale and the high cost of a housing loan.
Only 15 percent of the state’s households could afford a median-priced home – $833,170 – during the last three months of 2023, according to a Feb. 8 report by the California Association of Realtors.
That was unchanged from the third quarter 2023 and down from 17 percent during the fourth quarter of 2022.
An annual income of at least $222,800 was needed to make monthly mortgage payments of $5,570. That figure includes principal, interest and taxes on a 30-year fixed-rate mortgage with an interest rate of 7.39 percent.
Twenty-two percent of home buyers could purchase the $650,000 median-priced condominium or townhome during the fourth quarter of 2023. A minimum annual income of $174,000 was required to make monthly payments of $4,350 on those properties, according to the association.