Can You Afford A Home In California?

Ever wondered how many people in California can actually afford to buy a home? The California Association of Realtors (C.A.R.) tracks this with their Housing Affordability Index (HAI)—and the latest numbers for Q4 2024 are in.

Home Prices Keep Climbing

California’s housing market continues its upward trend, with the median price for a single-family home reaching $874,290. This marks a 4.9% increase from the previous quarter. With home prices on the rise, prospective buyers now need an annual income of at least $222,000 to afford a home at this price point. For many, homeownership in the Golden State is becoming increasingly out of reach.

How California Compares to the Rest of the U.S.

While California’s home prices soar, the national housing market tells a different story. Across the country, the median home price is $410,000, requiring an annual income of $104,000—less than half of what’s needed in California. Approximately 36% of U.S. households can afford a home at this price, while California’s affordability rate remains significantly lower.

What About The North Bay?

If you’re curious about housing affordability in the North Bay, we’ve got you covered! Check out the latest stats from the statewide report in the graphic below.

What’s Next for California’s Housing Market?

With mortgage rates, inflation, and economic factors influencing the market, will affordability improve or continue to decline? Keep an eye on future market reports from Jennifer Klein Real Estate to see how trends shift in 2025.

Are you looking to buy a home in California? Or curious about the experiences of sellers and buyers here? Get connected with me today to discuss your real estate goals and how I can best support in this year.