California's housing reality: Affordability, prices, sales dip

"The reality is even the least expensive parts of California have become unaffordable for homebuyers. Ponder affordability data from Attom, which tracks the typical house hunter's financial challenges dating to 2005 in 36 California counties. By comparing home values, mortgage rates and household incomes, Attom determined the share of income required for a home purchase."

"First, look at California's 12 priciest counties where a median 83% of income went toward the fourth-quarter's $1 million home price. But buying also takes 83% of incomes in the 12 cheapest counties, with a median price of $398,000. Next, eyeball the stunning change in this financial stress from its bottom. The median burden in the priciest counties has slightly more than doubled from their low of a 37% share of income. But that same stress more than quadrupled from a collective low of 20% in California's cheapest counties."

"Here's some modest relief for California house hunters: values were falling in 88% of the state as 2025 ended. Contemplate home value data from Zillow for 125 of the nation's largest metropolitan areas, including 16 from California. In the 12 months ended in December, values were down in 14 of the 16 California metros. But savings were meek, with the largest dip found in Stockton, off only 4% last year vs up 2% in 2024 and"

California housing affordability has deteriorated across price tiers and regions. Typical homebuyers now face much higher income shares needed to purchase homes, based on Attom's 36-county analysis comparing home values, mortgage rates, and household incomes. The priciest 12 counties show a median 83% income share for a $1 million median home. The 12 cheapest counties also require a median 83% of income for a $398,000 median home. Affordability burdens have more than doubled in expensive counties and more than quadrupled in the cheapest counties from historical lows. Home values were falling in 88% of the state at the end of 2025, and 14 of 16 California metros saw annual declines.

Read at The Mercury News