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

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.

what are mortgage rates in 2024?
Mortgage Rates 2024.

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.

Market News Today – Californians Don’t Make Enough Money to Afford A New Home.

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

Market News Today - Californians Don't Make Enough Money to Afford A New Home.
Market News Today – Californians Don’t Make Enough Money to Afford A New Home.

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

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

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Market News Today - Californians Don't Make Enough Money to Afford A New Home.
Market News Today – Californians Don’t Make Enough Money to Afford A New Home.

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