Californians Don’t Make Enough Money to Afford A New Home

June 25, 2024

Californians don’t make enough money to afford a new home according to new data figures released by the California Association of Realtors.

Only 15% of California households could afford to buy a home during the third quarter of 2023, according to the report.

In May 2024, home prices in California were up 9.8% compared to last year, making it much more difficult for the average resident to afford a new home today.

These number figures show that California’s housing affordability rates continue to decrease.

For comparison, about 56% of California home buyers could afford a home during the first quarter of 2012, the index’s peak high, per KTLA 5.

However, house affordability rates have dropped significantly since then, thanks to high housing costs, low inventory, and increasing interest rates.

Prospective homeowners currently in the market would need to make $221,200 annually to qualify to purchase a median-price, single-story home in California, typically costing $843,600.

According to Statista, in 2022, 14.88 million households in the United States had an annual income of $200,000 or more, which is about 12% of all households.

In California alone, 17.9% of households make over $200,000 a year, according to Income by Zip Code.

A 30-year mortgage for a median-priced home would require monthly payments of $5,530, assuming the prospective buyer could put down 20% for the standard down payment and qualify for an interest rate of around 7.1%

The current average interest rate for a fixed-rate, 30-year conforming mortgage loan in the United States is 6.853%, according to the most recent data available from mortgage technology and data company Optimal Blue.

What are mortgage rates in 2024?

The image below shows current rates for every type of mortgage.

Due to California’s high housing market, it is now one of the states most people in the country are moving out of, per RedFin.

What are your thoughts on the California housing market?

Know anyone who has moved out of the state due to unaffordability?

Leave your thoughts below and share this article with your community.

Also Read: SNAP Benefits Will Now Increase For The Year 2024

Other Economy News Today

More unexpected US bank branches are now closing in California according to new data from the Office of the Comptroller of the Currency.

Each week the Office of the Comptroller of the Currency (OCC) releases a report on bank closures in the US and today two more branches in California have been slated to close.

The new additional US bank branch closures include:

Bank of America. 9460 Scranton Rd, San Diego
Bank of America. 44411 20th St, East Lancaster

The Bank of America branch closures are joining a long list of branches in California that have closed in 2024 or will be closing soon this year.

Which US bank branches are closing in California?

Below is a list of bank branches slated to close this year in California:

Bank of America

294 Fox Hills Mall, Culver City
8375 Arroyo Circle, Gilroy
1175 Arnold Drive, Martinez
555 The Shops at Mission Viejo, Mission Viejo
72840 Highway 111, Palm Desert
12434 North Main Street, Rancho Cucamonga
14006 Riverside Drive, Sherman Oaks
2020 Lake Tahoe Boulevard, South Lake Tahoe
40750 Winchester Road, Temecula
225 Canyon Crest Dr, Riverside
8949 Clairemont Mesa Blvd, San Diego
7404 Jackson Dr, San Diego
3591 Mission Blvd, Fremont
4054 Macarthur Blvd, Oakland

Capital One

2201 Westwood Boulevard, Los Angeles

First Republic Bank

2800 East Coast Hwy, Corona Del Mar
680 Hartz Avenue, Danville
1200 Prospect Street, La Jolla
211 South J Street, Livermore
1888 Century Park East, Los Angeles
888 South Figueroa Street, Los Angeles
3991 MacArthur Boulevard, Newport Beach
73010 El Paseo, Palm Desert
249 Main Street, Pleasanton
776 El Camino Real, Redwood City
44 Montgomery Street, San Francisco
1625 The Alameda, San Jose
18499 Hesperian Boulevard, San Lorenzo
1111 South El Camino Real, San Mateo
1099 4th Street, San Rafael
1200 State Street, Santa Barbara
431 Wilshire Boulevard, Santa Monica
640 3rd Street, Santa Rosa

JPMorgan

2201 Westwood Boulevard, Los Angeles
640 3rd St, Santa Rosa
776 El Camino Real, Redwood City
44 Montgomery St, San Francisco
1099 4th St, San Rafael
1111 S El Camino Real, San Mateo
1888 Century Park E, Los Angeles
2800 E Coast Hwy, Corona Del Mar
1200 State St, Santa Barbara
888 S Figueroa St, Los Angeles
73010 El Paseo, Palm Desert
431 Wilshire Blvd, Santa Monica
1200 Prospect St, La Jolla
680 Hartz Ave, Danville
249 Main St, Pleasanton
211 S J St, Livermore
1625 The Alameda, San Jose
3991 MacArthur Blvd, Newport Beach

PNC Bank

Van Buren Blvd, Riverside

US Bank

400 Oceangate, Long Beach
6040 Telegraph Road, Ventura

Wells Fargo

3480 South La Brea Avenue, Baldwin Hills
1801 North Hacienda Boulevard, La Puente
1335 Webster Street, San Francisco
1150 East Vista Way, Vista
1601 West Capitol Ave, West Sacramento
2485 Notre Dame Blvd, Chico
315 S Beverley Dr, Beverly Hills
4135 Pacific Coast Hwy, Torrance
7847 Lichen Dr, Citrus Heights

For more U.S. Bank Branch Closure news and updates, opt-in for push notifications.

Also Read: A Massive US Bank is Now Closing Credit Cards

Market News Published Daily 📰

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors.

This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

Our readers can now donate $3 per month to support independent journalism.

For daily news and updates on your favorite stories, opt-in for push notifications.

Follow Frank Nez on X (Twitter), Instagram, or Facebook.

More Market News 📰