Housing affordability in California weakens through second quarter

Only one out of three households in California can afford median home prices, CAR says
  • Median home price for single-family homes in California was $516,220 through the second quarter of 2016.
  • Only 31 percent of California households could afford to purchase a home at the current median home price.
  • The minimum annual income to afford median home prices reached $101,217 -- the first time since the recession that minimum income was six figures.

Even with low interest rates, rising home prices in California are exceeding residents’ means to purchase, according to the California Association of Realtors (CAR), which says only 31 percent of the state’s population could afford to purchase an existing median-priced home in the second quarter.