TRANSACTION CENTER LEARN & THRIVE INDUSTRY 360° YOUR C.A.R. SIGN IN SEARCH Third quarter 2021 housing affordabiity EXPLORE YOUR C.A.R. Make a difference Member Benefits About Us Contact Us HOME ABOUT US MEDIA CENTER NEWS RELEASES 2021 NEWS RELEASES 3QTR2021HAI PRINT EMAIL SAVE SHARE For release: November 10, 2021 California housing affordability improves in third-quarter 2021 as mortgage rates remain low while prices begin leveling off, C.A.R. reports Twenty-four percent of California households could afford to purchase the $814,580 median-priced home in the third quarter of 2021, up from 23 percent in second-quarter 2021 but down from 28 percent in third-quarter 2020. A minimum annual income of $148,400 was needed to make monthly payments of $3,710, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 3.07 percent interest rate. Thirty-seven percent of home buyers were able to purchase the $600,000 median-priced condo or townhome. A minimum annual income of $109,200 was required to make a monthly payment of $2,730. Infographic: https://www.car.org/Global/Infographics/HAI-2021-Q3 LOS ANGELES (Nov. 10) – A slightly less competitive housing market combined with modest household income growth allowed more Californians to purchase a median-priced home in the third quarter of 2021, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today. The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in third-quarter 2021 edged up to 24 percent from 23 percent in the second quarter of 2021 but was down from 28 percent in the third quarter of 2020, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The third-quarter 2021 figure is less than half of the affordability index peak of 56 percent in the third quarter of 2012. C.A.R.’s HAI measures the percentage of all households that can afford to purchase a median-priced, single-family home in California. C.A.R. also reports affordability indices for regions and select counties within the state. The index is considered the most fundamental measure of housing well-being for home buyers in the state. A minimum annual income of $148,400 was needed to qualify for the purchase of a $814,580 statewide median-priced, existing single-family home in the third quarter of 2021. The monthly payment, including taxes and insurance on a 30-year, fixed-rate loan, would be $3,710, assuming a 20 percent down payment and an effective composite interest rate of 3.07 percent. The effective composite interest rate was 3.20 percent in second-quarter 2021 and 3.15 percent in third-quarter 2020. Despite setting a record high median price in third-quarter 2021, affordability for condominiums and townhomes was unchanged from the previous quarter. Thirty-seven percent of California households earned the minimum income to qualify for the purchase of a $600,000 median-priced condo/townhome in the third quarter of 2021, which required an annual income of $109,200 to make monthly payments of $2,730. The third quarter 2021 figure was down from 42 percent a year ago. Compared with California, half of the nation’s households could afford to purchase a $363,700 median-priced home, which required a minimum annual income of $66,400 to make monthly payments of $1,660. Nationwide affordability was down from 55 percent a year ago. Key points from the third-quarter 2021 Housing Affordability report include: Compared to the previous quarter, housing affordability declined in 10 tracked counties, improved in 30 counties, and remained unchanged in 11. Compared to the previous year, 41 counties experienced a drop in housing affordability from a year ago, seven counties remained unchanged, and only three counties improved (San Francisco, Monterey, Lassen). In the San Francisco Bay Area, affordability improved from the previous quarter in every county, except Napa, which held even at 23 percent. Alameda and San Mateo counties were the least affordable, tied at just 19 percent of households able to purchase the $2 million and $1.3 million median-priced home, respectively. Forty-two percent of Solano County households could afford the $580,000 median-priced home, making it the most affordable Bay Area county. In the Southern California region, affordability improved from the previous quarter in four counties (Los Angeles, Orange, San Diego, and Ventura) and was unchanged in Riverside (33 percent), and San Bernardino, which was the most affordable (43 percent). In the Central Valley region, Kings County was the most affordable at 56 percent, and San Benito was the least affordable at 27 percent. In the Central Coast region, Santa Barbara and Santa Cruz counties were tied for the least affordable, and San Luis Obispo County was the most affordable at 24 percent. During the third quarter of 2021, Lassen (68 percent) remained the most affordable county in California in the third quarter of 2021, followed by Kings (56 percent) and Tulare (46 percent). The minimum qualifying income was less than $58,800 for each of these counties. Lassen also had the lowest minimum qualifying income to purchase a median-priced home at $39,200. Mono (13 percent), Santa Barbara (17 percent) and Santa Cruz (17 percent) were the least affordable counties in the state, with each of them requiring at least a minimum income of $153,200 to purchase a median-priced home in those counties. Purchasing a median-priced home in San Mateo required the highest minimum annual income, reaching $364,000 in the third quarter of 2021. Three additional Bay Area counties required minimum annual incomes of over $300,000 in third-quarter 2021, including San Francisco ($331,600), Marin ($305,200), and Santa Clara ($300,400). Housing affordability declined the most on a year-over-year basis in Yuba and Tehama, dropping 13 points and 10 points, respectively. The plunge in affordability was due primarily to the surge in the counties’ median prices from a year ago, relative to the moderate rise in household income. Yuba County’s median price increased 20.9 percent in third-quarter 2021, and Tehama’s grew 25.7 percent year-over-year. Calaveras County had the largest median price growth (29.1 percent) but the fourth largest drop in affordability (8 points) from a year ago. See C.A.R.’s historical housing affordability data. See first-time buyer housing affordability data. Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® (www.car.org) is one of the largest state trade organizations in the United States with more than 200,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles. # # # CALIFORNIA ASSOCIATION OF REALTORS® Traditional Housing Affordability Index Third quarter 2021 STATE/REGION/COUNTY 3rd Qtr. 2021 2nd Qtr. 2021 3rd Qtr. 2020 Median Home Price Monthly Payment Including Taxes & Insurance Minimum Qualifying Income Calif. Single-family home 24 23 28 $814,580 $3,710 $148,400 Calif. Condo/Townhome 37 37 42 $600,000 $2,730 $109,200 Los Angeles Metro Area 26 24 31 $730,000 $3,320 $132,800 Inland Empire 36 36 42 $524,000 $2,390 $95,600 San Francisco Bay Area 22 19 26 $1,292,250 $5,880 $235,200 United States 50 50 55 $363,700 $1,660 $66,400 San Francisco Bay Area Alameda 19 18 24 $1,300,000 $5,920 $236,800 Contra Costa 31 26 34 $905,000 $4,120 $164,800 Marin 22 21 22 $1,675,000 $7,630 $305,200 Napa 23 23 27 $930,000 $4,230 $169,200 San Francisco 21 19 20 $1,820,000 $8,290 $331,600 San Mateo 19 17 19 $2,000,000 $9,110 $364,400 Santa Clara 22 21 22 $1,650,000 $7,510 $300,400 Solano 42 40 45 $580,000 $2,640 $105,600 Sonoma 28 25 29 $765,000 $3,480 $139,200 Southern California Los Angeles 19 22 23 $860,870 $3,920 $156,800 Orange 18 17 23 $1,100,000 $5,010 $200,400 Riverside 33 33 40 $570,000 $2,600 $104,000 San Bernardino 43 43 51 $437,500 $1,990 $79,600 San Diego 23 22 27 $850,000 $3,870 $154,800 Ventura 25 23 28 $830,000 $3,780 $151,200 Central Coast Monterey 20 18 19 $827,250 $3,770 $150,800 San Luis Obispo 24 21 28 $772,500 $3,520 $140,800 Santa Barbara 17 13 17 $1,015,000 $4,620 $184,800 Santa Cruz 17 15 19 $1,201,000 $5,470 $218,800 Central Valley Fresno 42 43 48 $375,000 $1,710 $68,400 Glenn 44 45 49 $325,000 $1,480 $59,200 Kern 45 45 49 $332,000 $1,510 $60,400 Kings 56 56 59 $315,000 $1,430 $57,200 Madera 43 44 49 $378,000 $1,720 $68,800 Merced 44 44 44 $365,000 $1,660 $66,400 Placer 38 35 43 $650,000 $2,960 $118,400 Sacramento 39 38 44 $511,950 $2,330 $93,200 San Benito 27 25 32 $778,500 $3,540 $141,600 San Joaquin 37 37 44 $512,000 $2,330 $93,200 Stanislaus 41 40 47 $435,000 $1,980 $79,200 Tulare 46 45 50 $322,000 $1,470 $58,800 Far North Butte 35 33 35 $441,750 $2,010 $80,400 Lassen 68 62 63 $215,000 $980 $39,200 Plumas 38 39 39 $423,000 $1,930 $77,200 Shasta 44 45 50 $375,000 $1,710 $68,400 Siskiyou 41 44 49 $331,500 $1,510 $60,400 Tehama 38 38 48 $349,000 $1,590 $63,600 Other Calif. Counties Amador 42 40 50 $425,000 $1,940 $77,600 Calaveras 39 37 47 $475,000 $2,160 $86,400 Del Norte 35 35 39 $382,500 $1,740 $69,600 El Dorado 35 31 40 $660,000 $3,010 $120,400 Humboldt 32 32 41 $420,000 $1,910 $76,400 Lake 42 43 47 $352,000 $1,600 $64,000 Mariposa 35 36 35 $422,650 $1,920 $76,800 Mendocino 23 23 31 $554,000 $2,520 $100,800 Mono 13 9 16 $841,000 $3,830 $153,200 Nevada 35 34 41 $561,000 $2,550 $102,000 Sutter 42 40 47 $405,000 $1,840 $73,600 Tuolumne 45 44 52 $389,500 $1,770 $70,800 Yolo 33 32 38 $600,000 $2,730 $109,200 Yuba 38 39 51 $411,000 $1,870 $74,800 Featured Articles YOUR C.A.R. Media Center C.A.R.'s Media Center houses the Association's news releases, media guidelines, and logos. YOUR C.A.R. 2022 C.A.R. Officers Meet the 2022 C.A.R. Leadership Team YOUR C.A.R. Customer Service Looking for additional assistance? 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