The share of California home buyers who could afford the state’s median priced home remained at just 31 percent during the last quarter of 2016, according to a new report.
That percentage was the same as the previous quarter. That home affordability index has been under 40 percent for nearly four years, according to the report by the California Realtors Association.
Jordan Levine, a senior economist with the association, says the reason home prices remain high and affordability low is simple:
“One of the big issues is supply. Supply and affordability go hand in hand. We really haven’t kept pace with population growth in terms of building new housing units.”
The report says the median priced home in the state held relatively steady at $511,000. That’s down slightly from $515,000 the previous quarter.
It says home buyers needed a minimum income of nearly $101,000 to reasonably afford the state’s median priced home.