Average CA Home Price To Soar To 20 Times The Average Salary By 2030, Study Finds

CALIFORNIA — California is projected to be the third most expensive state to buy a house in 2030, according to a recent study.

The study, conducted by SmartSurvey, analyzed Zillow house prices for 2012 to 2022 alongside income data from the U.S. Bureau of Labor Statistics to predict the home-cost-to-income ratio for each state.

With a projected average house price of $1.24 million and a predicted salary of $60,712, homes in California are predicted to cost 20.4 times more than the typical income by 2030, the study said.

The Golden State was ranked between Nevada, which was expected to be second most expensive with projections of a $1.04 million average house price and $48,369 typical income, and Utah, which was predicted to be fourth with an average house price of $1.12 million and salary of $56,787.

“The fast-growing trend observed over the last ten years in the housing market shows a worrying perspective, as it looks like the already struggling younger generation will be less and less able to afford to buy a house by 2030 and beyond,” a SmartSurvey spokesperson said in a news release.

“However, this data might also be a good starting point for people looking to relocate in the future, as it allows them to anticipate potential shifts in affordability and plan accordingly.”

Ranked least affordable on the list was Hawaii, with a projected home price of $1.42 million and an annual income of $61,221, meaning a typical house would cost 23.3 times more than the average income.

Illinois was ranked most affordable, with a house-price-to-income ratio of 2.9, the average home projected to cost $171,361 and a typical income predicted at $59,929.