California home affordability rates plummet
May 14, 2014
Higher home prices and interest rates have resulted in a sharp drop in the number of Californians able to afford a home, according to report by the California Association of Realtors
In 2013, 44 percent of Californians had incomes sufficient to purchase a home in the state. Currently, only 33 percent of home buyers can afford a median-priced, existing single-family home in California.
The median home price for the first quarter of 2014 was $416,720 and an annual income of $86,419 was needed to purchase a home at that price.
According to the report, the three most affordable counties in California are Madera County (65 percent), San Bernardino County (63 percent), and Kings County (62 percent). The least affordable counties in California include San Mateo County (12 percent), San Francisco County (14 percent), Santa Barbara County (16 percent), and Marin County (16 percent).
San Luis Obispo, Contra Costa and Kings counties had the lowest increase least in minimum income required to purchase a median-priced home.