"The LAO study found California home prices far exceed the rest of the country. Mid-tier homes, those roughly in the middle of the price range, are more than twice as expensive as the typical mid-tier home elsewhere in the U.S. Monthly payments for such homes run about $5,500 in California, 74% more than what they were 25 years ago. The study also found that the annual household income needed to qualify for a mortgage on a mid-tier California home in September was about $221,000"
"For a bottom-tier home, about $136,000 in annual income is needed to qualify for a mortgage about 33% higher than median household income was in 2024. The data illustrate why California has the second lowest rate of home ownership in the nation. Just 55.3% of Californians live in homes they or their families own, slightly higher than New York's ownership rate. It's not surprising that hundreds of thousands of California residents, unable to aspire to home ownership, have decamped for more affordable states,"
California mid-tier home prices are more than twice the national mid-tier price, producing monthly payments around $5,500 and a 74% increase over 25 years. Qualifying for a mid-tier mortgage in September required roughly $221,000 in annual household income, more than double the 2024 median household income of $102,000. For bottom-tier homes, about $136,000 in annual income was needed, roughly 33% above the median. These cost pressures contribute to a 55.3% homeownership rate, the second-lowest in the nation. Many residents relocate to states with much lower housing, fuel, and utility costs. The Center for Jobs & the Economy reports gasoline averaging $4.64 a gal
Read at www.mercurynews.com
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