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

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

PR Newswire

SACRAMENTO, Calif., Aug. 5, 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.SACRAMENTO, Calif., Aug. 5, 2026 /PRNewswire/ -- Housing affordability in California retreated in the second quarter of 2026 after reaching a four-year high in the previous quarter, as higher mortgage rates and rebounding home prices increased borrowing costs for prospective buyers, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.