The percentage of households in California able to afford a median-priced home fell to 18 percent in June, a 9 percentage-point decrease compared to the same month a year ago, according to a report released today by the California Association of Realtors.

The June Housing Affordability Index, which dropped to its lowest level since November 1989, declined one point compared to May, when it stood at 19 points.

The minimum household income needed to purchase a median-priced home at $469,170 in California in June was $111,690, based on an average effective mortgage interest rate of 6.01 percent and assuming a 20 percent down payment. This figure was up from $84,530 in June 2003, when the median price of a home was $374,540 and the prevailing interest rate was 5.4 percent.

In contrast, the minimum household income needed to purchase a median-priced home at $191,800 in the U.S. in June 2004 was $45,660.

At 43 percent, the High Desert region was the most affordable region in the state, followed by the Sacramento region at 26 percent. The Santa Barbara and San Diego regions were the least affordable regions in the state at 10 percent.

Los Angeles-based C.A.R. is a state trade organization with more than 135,000 members.


What’s your opinion? Send your Letter to the Editor to

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription