California housing affordability continued to decline in 2024, with only 18% of residents able to purchase a median-priced single-family home. The California Association of Realtors reported that the median home price reached $865,440 last year. Buyers needed a minimum income of $221,200 to cover the average monthly mortgage payment of $5,530.

That affordability rate fell from 19% in 2023 to 18% in 2024, marking the lowest level since the Great Recession. The combined effect of high mortgage interest rates and lagging income growth is pricing out more households across the state.

Homeownership Out of Reach for Many
California housing affordability continues to impact first-time buyers and working families, especially in urban and coastal counties where prices are highest. Mortgage interest rates stayed elevated throughout 2024, pushing monthly payments out of reach for moderate-income earners even in areas where prices saw slight dips.

In high-cost counties like San Mateo, Orange, and Santa Clara, home prices far exceeded the state median. Affordability in these areas dropped to single-digit percentages, forcing many residents to consider relocating inland.

Widening Racial and Ethnic Gaps
Affordability rates also remain uneven across racial and ethnic lines. Only 10% of Black households and 9% of Hispanic/Latino households in California earned enough in 2024 to qualify for a median-priced home. These numbers mirror 2023 levels and remain well below the 27% rate for Asian households and 21% for White households.

The disparities reflect continued gaps in household income. According to statewide data, median incomes for Black and Hispanic/Latino households lag significantly behind those of Asian and White households. These differences limit access to credit and the ability to save for down payments.

Barriers Include Credit, Income, and Supply
Experts point to longstanding issues such as income inequality, limited access to credit, and the legacy of housing discrimination. These challenges are compounded by a limited housing supply and restrictive zoning laws that slow or prevent new affordable home construction.

While the affordability gap between groups narrowed slightly in 2024, housing analysts warn that this change is the result of a broader decline, not structural improvement. The decline in affordability for Asian households, while notable, still leaves them the most likely to qualify for a home loan.

Local Impact and Policy Push
Declining California housing affordability continues to influence local economies and demographic trends. Many younger adults and long-term renters face limited paths to ownership and are being priced out of the communities where they grew up.

Policy advocates are calling for expanded down payment assistance programs, increased investment in affordable housing, and zoning reforms that allow for higher residential density. Without these changes, housing experts warn the affordability crisis will deepen, making homeownership even more elusive for future generations.

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