Less than 18% of California residents earned enough income to buy an $865,440 median-priced home in 2024, down from 19% the previous year, the California Association of Realtors announced Thursday.
Among ethnic groups statewide, 21% of white households could afford a median-priced home in 2024, while 10% of Black and 9% of Hispanic/Latino households had the same ability. For Asian households, 27% could afford a median-priced place to live last year.
Interest rates remained elevated and the typical monthly mortgage payment for a median-priced detached home rose 6% last year versus 2023’s median.
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. Just 8% of Hispanic/Latino and 7% of Black households could afford the same home, according to CAR.
Orange County was the least affordable 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-priced residence.
In Riverside County, 25% of all households earned enough income to support the purchase of a $628,470 median-priced home with monthly payments of $4,010, the survey showed. CAR reported that 37% of Asian residents and 29% of white households could afford the same structure. Meanwhile, 23% of Black households and 20% of Hispanic/Latino households could afford the a median-priced home in Riverside County.
In San Bernardino County, 32% of Hispanic/Latino households could afford a median-priced home averaging $485,000, CAR reported. For Black households, 25% could afford the same home, compared with 37% of white and 47% of Asian households.
Across the state, housing affordability gaps narrowed in 2024 but remained wide as home prices rose 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% last year, while the gap for Hispanics/Latinos improved from 9.4% in 2023 to 2024’s 8.3%.
While interest rates are projected to dip slightly this year, the gap in housing affordability among ethnic groups will likely stay wide as home prices are expected to grow moderately in the next 12 months, CAR reported.
According to the U.S. Census Bureau’s American Community Survey, the statewide rate of homeownership in 2023 was 55.9% overall, 64.4% for whites, 61.5% for Asians, 45.9% for Hispanics/Latinos and 36.6% for Black households.
