California Housing Affordability – Q3 2023

In the third quarter of 2023, California continues to grapple with a housing affordability crisis, with only 15% of households able to afford the median priced home. The real estate landscape in the Golden State reveals a stark reality, as the median priced home stands at a staggering $843,600.

For prospective homeowners, the challenge becomes even more pronounced when considering the necessary income to secure a 30-year mortgage. With a mortgage payment of $5,530 per month, a household would need an annual income of $221,200 to comfortably afford the median priced home in California.

The juxtaposition of soaring home prices and the struggle of many Californians to meet the financial requirements for homeownership underscores the pressing need for comprehensive solutions to address housing affordability. Policymakers, real estate professionals, and community leaders must collaborate to explore innovative approaches, such as incentivizing affordable housing development, promoting sustainable urban planning, and addressing regulatory barriers that contribute to the current crisis.

As the housing affordability debate intensifies, finding a balance between market dynamics and ensuring equitable access to housing for all Californians remains a top priority. The ongoing discourse will likely shape the future trajectory of the state’s real estate landscape and the broader economic well-being of its residents.

Source: California Association of REALTORS®