Just 19% of Californians can afford a median-priced home

Only 19% of households in California could afford a median-priced, existing single-family home in the third quarter, the California Association of Realtors reported on Friday. This figure marks a historic low in purchasing power for the state's working families.

The percentage of affordable homes has held steady since the second quarter of this year and the same period in 2025. While mortgage rates have risen, a slight drop in home prices kept monthly housing costs flat compared to the previous quarter.

The minimum household income required to qualify for a loan on a median-priced home statewide stands at $228,000. This amount is $4,400 higher than the figure recorded a year ago, though it has not changed since the second quarter. The association noted that this threshold has remained above $200,000 for 15 of the last 16 quarters.

The corresponding monthly mortgage payment, which includes principal, interest, taxes, and insurance, sits at $5,700. This cost is up 2.0% from the third quarter of 2025. California residents continue to pay more than double the national average monthly payment of $2,760.

Affordability varies sharply by location within the state. In the Los Angeles metro area, a median-priced single-family home costs $847,030. Buyers there need a minimum income of $215,600 to cover monthly mortgage payments of $5,390.

In Los Angeles County, the median price reaches $958,450. This requires a monthly payment of $6,100 and a qualifying household income of $244,000. Orange County presents the steepest financial hurdle, with median home prices at $1.47 million. Buyers in that region must earn at least $374,400 to manage monthly mortgage payments of $9,360.

The California Association of Realtors indicated that high inflation is likely to keep mortgage rates elevated in the coming months. This stability in costs means the gap between local wages and home prices will persist for prospective buyers in the short term.