California Home Affordability Update: Challenges and Insights for 2024
In 2024, only 17% of California residents can afford to buy a median-priced home. This figure, reported by the California Association of Realtors (C.A.R.), highlights the ongoing challenges in the housing market.
Affordability Trends
Affordability has slightly improved from 15% in late 2023 but remains below the 20% seen in early 2023. The highest affordability was 56% in 2012. With the economy performing better than expected, interest rates are unlikely to decrease soon, further impacting affordability.
C.A.R.'s Housing Affordability Index (HAI) measures the percentage of households that can afford a median-priced home. The current median price for a single-family home in California is $814,280, requiring an annual income of $208,400. Monthly payments, including taxes and insurance, are $5,210 with a 20% down payment and an interest rate of 6.86%.
Regional Differences
Affordability varies across California. In the first quarter of 2024, only 24% of households could afford a typical condo/townhome, requiring an annual income of $167,600 for a $655,000 property.
Comparisons with National Figures
Nationally, nearly 40% of households can afford a median-priced home, which costs $389,400. This requires a minimum annual income of $99,600 for monthly payments of $2,490. Nationwide affordability has decreased slightly from 40% last year.
Local Insights
Housing affordability has changed across various counties. Lassen remains the most affordable, while Mono and San Luis Obispo are the least affordable. High home prices and elevated mortgage rates continue to keep affordability low.
Benefits of Working with Jeff Marples
Navigating these challenging conditions requires expertise. Jeff Marples, a trusted real estate broker in San Francisco, offers valuable insights and guidance. Whether you are looking for a real estate agent in San Francisco, a realtor in San Francisco, or a real estate broker in San Francisco, Jeff Marples can help you find the best opportunities.
Jeff Marples provides personalized assistance to help you understand the market, find the right property, and navigate the complexities of buying a home in these challenging times. For expert advice and dedicated support, connect with Jeff Marples, your trusted real estate professional in San Francisco.
