California Homes 75 Percent Unaffordable, Buyers Locked Out
Current State of California Housing Affordability California's housing affordability crisis has reached a critical juncture. Only 15% of households can purchase a median-priced home as of the second quarter of 2025. The Statewide Affordability Index shows a decline from 17% in Q1 2025. It matches a record low from 2023. A decade ago, 56% of Californians could afford a median home. This highlights the significant change over time. Median home prices have climbed 6.9% quarter-over-quarter to $905,680. They're projected to rise further, making the market even more inaccessible. Mortgage rates hover around 7%, exacerbating the affordability crisis and significantly affecting prospective buyers. Inventory conditions remain challenging, with certain areas experiencing multiple-offer situations due to tight supply and ongoing demand. Due to this affordability crisis, 85% of households are effectively priced out. An annual income of $232,400 is now needed to comfortably manage monthl...