Q2 Housing Affordability Index

C.A.R. reports... California housing affordability retreated in the second quarter after reaching a four-year high in early 2026

Higher mortgage rates and rebounding home prices increased borrowing costs for prospective buyers.

Nineteen percent of California households could afford to purchase the $916,750 median-priced home in the second quarter of 2026, down from 22 percent in the first quarter but up from 17 percent in the second quarter of 2025.
A minimum annual income of $228,400 was needed to make monthly payments of $5,710, including principal, interest, taxes and insurance on a 30-year fixed-rate mortgage at a 6.54 percent interest rate.
Thirty percent of home buyers could afford the $670,000 median-priced condo or townhome. A minimum annual income of $166,800 was required to make a monthly
payment of $4,170.