California continues to hold the dubious title of being one of the least affordable locations to buy a home in the country as indicated by fourth quarter numbers out from the California Association of Realtors. Just 15 percent of California households could afford to purchase the $833,170 median-priced home in the fourth quarter of 2023, unchanged from 15 percent in third-quarter 2023 and down from 17 percent in fourth-quarter 2022.
The fourth-quarter 2023 figure is less than a third of the affordability index peak high of 56 percent in the first quarter of 2012.
A minimum income of $222,800 was needed to qualify for the purchase of a $833,170 statewide median-priced, existing single-family home in the fourth quarter of 2023. The monthly payment, including taxes and insurance (PITI) on a 30-year, fixed-rate loan, would be $5,570, assuming a 20 percent down payment and an effective composite interest rate of 7.39 percent.
Compared with California, more than a third of the nation’s households could afford to purchase a $391,700 median-priced home, which required a minimum annual income of $104,800 to make monthly payments of $2,620. Nationwide affordability was down from 38 percent a year ago.
Mono, Monterey, and San Luis Obispo were the least affordable counties in California, with each county requiring at least a minimum income of $242,800 to purchase a median-priced home in their counties. Lassen remained the most affordable county in California.