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Higher home prices and economic recession dampen California housing affordability in second-quarter 2020, C.A.R. reports


LOS ANGELES, Aug. 12, 2020 /PRNewswire/ -- Higher home prices and lower household income caused by the economic recession dampened California housing affordability in the second quarter of 2020, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in second-quarter 2020 dipped to 33 percent from 35 percent in the first quarter of 2020 but was up from 30 percent in the second quarter a year ago, according to C.A.R.'s Traditional Housing Affordability Index (HAI). California's housing affordability index hit a peak of 56 percent in the second quarter of 2012.

C.A.R.'s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure of housing well-being for home buyers in the state.

A minimum annual income of $115,200 was needed to qualify for the purchase of a $610,850 statewide median-priced, existing single-family home in the second quarter of 2020. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $2,880, assuming a 20 percent down payment and an effective composite interest rate of 3.43 percent. The effective composite interest rate was 3.70 percent in first-quarter 2020 and 4.17 percent in second-quarter 2019. 

Housing affordability for condominiums and townhomes was unchanged from first-quarter 2020, with 44 percent of California households earning the minimum income to qualify for the purchase of a $480,000 median-priced condominium/townhome. An annual income of $90,400 was required to make monthly payments of $2,260. Forty percent of households could afford to buy a median-priced condominium/townhome a year ago.

Compared with California, more than half of the nation's households (57 percent) could afford to purchase a $291,300 median-priced home, which required a minimum annual income of $54,800 to make monthly payments of $1,370.

Key points from the second-quarter 2020 Housing Affordability report include:

See C.A.R.'s historical housing affordability data.
See first-time buyer housing affordability data.

Leading the way...® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.

CALIFORNIA ASSOCIATION OF REALTORS®

Traditional Housing Affordability Index

Second quarter 2020


STATE/REGION/COUNTY

Q22020

Q12020


Q22019


Median Home Price

Monthly Payment Including Taxes & Insurance

Minimum Qualifying Income

Calif. Single-family home

33

35


30


$610,850

$2,880

$115,200

Calif. Condo/Townhome

44

44


40


$480,000

$2,260

$90,400

Los Angeles Metro Area

36

35


32


$548,000

$2,580

$103,200

Inland Empire

46

46


42


$400,000

$1,880

$75,200

San Francisco Bay Area

28

31


24


$989,000

$4,660

$186,400

United States

57

59


55


$291,300

$1,370

$54,800










San Francisco Bay Area









Alameda

26

28


23


$990,000

$4,660

$186,400

Contra Costa

37

42


35


$725,000

$3,410

$136,400

Marin

22

23


21


$1,460,000

$6,880

$275,200

Napa

33

34


28


$720,000

$3,390

$135,600

San Francisco

19

20


17


$1,710,000

$8,050

$322,000

San Mateo

19

20


18


$1,700,000

$8,010

$320,400

Santa Clara

22

22


20


$1,380,000

$6,500

$260,000

Solano

46

49


46


$485,000

$2,280

$91,200

Sonoma

31

32


28


$679,900

$3,200

$128,000

Southern California









Los Angeles

32

31


29


$581,650

$2,740

$109,600

Orange

25

24


24


$859,000

$4,050

$162,000

Riverside

43

44


39


$440,000

$2,070

$82,800

San Bernardino

54

53


50


$324,000

$1,530

$61,200

San Diego

30

30


27


$670,000

$3,160

$126,400

Ventura

31

32


30


$690,000

$3,250

$130,000

Central Coast









Monterey

25

26


24


$680,000

$3,200

$128,000

San Luis Obispo

31

31


25


$625,000

$2,940

$117,600

Santa Barbara

31

27


20


$645,000

$3,040

$121,600

Santa Cruz

23

23


17


$905,000

$4,260

$170,400

Central Valley









Fresno

51

52


48


$300,000

$1,410

$56,400

Glenn

46

46


NA


$304,250

$1,430

$57,200

Kern

50

52


50


$271,990

$1,280

$51,200

Kings

60

61


55


$260,000

$1,220

$48,800

Madera

51

52


51


$300,000

$1,410

$56,400

Merced

48

48


47


$285,000

$1,340

$53,600

Placer

45

46


45


$515,000

$2,430

$97,200

Sacramento

46

47


44


$405,000

$1,910

$76,400

San Benito

39

42


35


$600,000

$2,830

$113,200

San Joaquin

45

46


44


$409,000

$1,930

$77,200

Stanislaus

49

51


48


$352,000

$1,660

$66,400

Tulare

52

53


50


$259,580

$1,220

$48,800

Other Calif. Counties









Amador

53

53


46


$335,000

$1,580

$63,200

Butte

38

41


35


$379,880

$1,790

$71,600

Calaveras

49

48


46


$349,000

$1,640

$65,600

Del Norte

43

50


NA


$282,450

$1,330

$53,200

El Dorado

44

47


40


$515,000

$2,430

$97,200

Humboldt

43

43


37


$322,500

$1,520

$60,800

Lake

47

52


44


$302,500

$1,420

$56,800

Lassen

68

64


63


$199,500

$940

$37,600

Mariposa

43

46


45


$349,500

$1,650

$66,000

Mendocino

38

36


29


$410,000

$1,930

$77,200

Mono

17

17


15


$718,750

$3,380

$135,200

Nevada

45

46


40


$433,750

$2,040

$81,600

Plumas

52

48


37


$289,850

$1,370

$54,800

Shasta

52

52


47


$295,000

$1,390

$55,600

Siskiyou

54

52


49


$230,000

$1,080

$43,200

Sutter

50

50


46


$325,000

$1,530

$61,200

Tehama

54

49


47


$238,500

$1,120

$44,800

Tuolumne

54

54


48


$304,000

$1,430

$57,200

Yolo

43

43


40


$457,000

$2,150

$86,000

Yuba

52

53


46


$324,950

$1,530

$61,200

NA = not available

 

SOURCE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.)


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