Less than 18% of all Californians earned enough income to support the purchase of an $865,440 median-priced home in 2024, down from 19% the previous year, the California Association of Realtors announced Thursday.
Among ethnic groups in California, 21% of white households could afford a median-priced home in 2024. In comparison, only 10% of Black and 9% of Hispanic/Latino households had the same ability. Meanwhile, 27% of Asian households could afford a median-priced home last year.
According to CAR, interest rates remained elevated and the typical monthly mortgage payment for a median-priced detached home rose 6% last year compared to 2023.
In San Diego, 15% of all households earned enough income to support the purchase of a $1 million median-priced home with monthly payments of $6,390, the survey showed. CAR reported that 20% of Asian residents and 17% of white households could afford the same home.
Meanwhile, just 9% of Hispanic/Latino households and 7% of Black households could afford the same home in San Diego, according to CAR.
Orange County was the least affordable county for white households, with 15% earning the minimum income required to buy a median-price home. For Asian households, Orange County was also the least affordable, with 14% earning the minimum income required to buy a median-price home.
In Los Angeles, 21% of white households and 18% of Asian residents could afford a median-priced home costing $906,030 with monthly payments of $5,790 in 2024. Meanwhile, just 8% of Hispanic/Latino households and 7% of Black households could afford the same home, according to CAR.
Across the state, housing affordability gaps narrowed last year but remained wide as home prices increased and mortgage rates remained elevated. The affordability gap between Black households and the overall population in California narrowed from 8.9% in 2023 to 8% in 2024, while the gap for Hispanics/Latinos improved from 9.4% in 2023 to 8.3% in 2024.
While interest rates are projected to dip slightly in 2025, the gap in housing affordability among ethnic groups will likely remain wide this year as home prices are expected to grow moderately in the next 12 months, researchers found.
According to the Census Bureau's American Community Survey, the 2023 homeownership rate for all Californians was 55.9%, 64.4% for whites, 61.5% for Asians, 45.9% for Hispanics/Latinos and 36.6% for Black households.
