Homebuyers needed at least a six-figure income to afford the median-priced house in Orange and Los Angeles counties over the summer, the California Association of Realtors reported Wednesday.
In Los Angeles County, buyers need to earn at least $104,330 to afford a median-priced home, which cost $536,720 in the third quarter, Realtor figures show. Twenty-six percent of households in the county met that criteria.
The Inland Empire was among the state’s most affordable regions, Realtor figures show. Forty-six percent of households in that region could afford the median-priced house, which cost just under $319,000 during the third quarter. The minimum income needed to afford that house was $62,000 a year.
In Orange County, buyers needed to earn a minimum annual income of $143,850 to afford a $740,070 median-priced, existing single-family home in the third quarter of 2016, the association reported. Only 23 percent of Orange County households make that much.
That assumes the buyer is putting 20 percent down and house payments amount to no more than a third of monthly earnings.
Although affordability rates improved slightly over the past year, they have been dropping steadily since 2012 to some of the lowest in the nation.
The state Realtor group held a housing summit this week in Century City to address California’s “affordability crisis.”
“California’s high cost of housing is putting the squeeze on the state’s residents,” said Joel Singer, the Realtor association’s chief executive. “With a historical low homeownership rate of 54 percent and skyrocketing rental costs, the dream of owning a home in California is evaporating.”
By comparison, the national affordability rate in the third quarter was 57 percent of all households, Realtor figures show. Statewide, it was 31 percent.
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