Affordability challenges are not limited to California, as national home prices have risen significantly since 2022. In California, the required income to buy a median home is now $232,400, with only 15% of households able to afford it. Comparatively, the national median home requires an income of $110,400, with 34% qualifying. The median home value increased by 3% in California and 4% nationwide since 2022. In the Bay Area, prices have dipped slightly, resulting in 20% of households qualifying for home purchases, compared to 18% previously.
Buying the $429,400 U.S. median home required $110,400 in income, a cash flow that grew $17,200 or 18% since 2022. 34% of Americans qualify compared to 38% three years ago.
Buying the Bay Area's $1.4 million median home required $359,200 in income this spring - up $22,000 or 7% in three years, and a $280,000 down payment.
Affordability is pegged to a buyer spending 30% of their household income on these house payments. This calculation also includes a 20% down payment.
The theoretical California house hunter needs $181,000 in cash to close a sale. Nationally, a 20% down payment costs $86,000.
#housing-affordability #california-housing-market #national-housing-market #median-home-prices #income-requirements
Collection
[
|
...
]