California housing affordability remained near historic lows in the third quarter, with just 19% of households able to afford a median-priced, existing single-family home, the California Association of Realtors said Friday.
The percentage was unchanged from the second quarter and the third quarter of 2025, as lower home prices helped offset higher mortgage rates and kept monthly housing costs flat from the prior quarter.
Despite the quarterly stability, affordability remained challenging as mortgage rates climbed and home prices stayed elevated, according to C.A.R.
With inflation likely to remain high in the near term, mortgage rates may not moderate much over the next couple of months, continuing to challenge purchasing power for prospective homebuyers.
The minimum qualifying household income needed to purchase a median- priced existing single-family home statewide was $228,000 in the third quarter, unchanged from the previous quarter and $4,400 higher than a year ago.
The corresponding monthly mortgage payment, including principal, interest, taxes and insurance, also held steady at $5,700, although it increased 2.0% from third-quarter 2025.
The income required to purchase a typical California home has now exceeded $200,000 in 15 of the past 16 quarters. California’s monthly housing payment also remained more than twice the national average of $2,760, C.A.R. said Friday.
In the Los Angeles metro area, an existing single-family home cost $847,030 in the third quarter, requiring monthly mortgage payments of $5,390, and a minimum qualifying income of $215,600, according to the association.
Homes in Los Angeles County cost $958,450, requiring monthly mortgage payments of $6,100, and a minimum qualifying income of $244,000, according to the association.
More information can be found at car.org/.
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