By Alejandro Lazo, Photo: Miguel Gutierrez Jr./CalMatters, CalMatters, March 24, 2022
Homeownership has long been considered a path to the middle class. But just 17% of Black and Latino households could afford a median-priced home in California last year, down from the prior two years, according to a new report.
All Californians faced a high-barrier market in 2021. Only 26% of California households earned the minimum annual income of $144,400 needed to afford the monthly payments of a home priced at $786,750, the report by the California Association of Realtors said. That was down from 28% in 2020 and 30% in 2019.
The median home price is the point at which half the homes in the state are sold for more and half for less. In an ideal market, half of Californians would be able to afford a median-priced home, said Oscar Wei, deputy chief economist at the Realtors group.
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