Nearly 70 Percent Of Residents Can't Afford To Buy A Home In Calif.: Study

Nearly 70 percent of Californians could not afford a median-priced home in the state during the first three months of this year, the California Association of Realtors reported this week. According to the report, 32 percent of households could afford to buy a $496,620 home ― the median price in state ― during the first quarter of 2017. That required a yearly income of $102,050 and monthly payments of $2,550, tax and insurance included. The association assumes that the buyer puts down 20 percent and got a 30-year mortgage with a fixed interest rate of 4.36 percent.

In some of the more desirable parts of California, the average household would need an income of more than two times the state's average. In San Mateo, San Francisco, Marin and Santa Clara counties, you would need an income of around $267,000 in order to afford a home there, according to CAR. The median homes there range from $805,000 to $1.3 million.

Southern California wasn't any better. In Los Angeles County, you'd need an annual income of at least $99,830 for a median-priced home of $485,800, according to CAR. Only 32 percent of people there could afford to buy.

Los Angeles, however, was still more affordable other coastal counties in Southern California. In Orange County, a salary of $154,120 was needed to afford a median-priced home and only 21 percent of buyers can afford to do so. San Diego County required an income of $115,900 and only 29 percent can afford a home there.

Away from the coast, prices were more affordable, at least for California. In the San Joaquin Valley, the annual income needed to buy a home range from $43,600 to around $49,000. About half the people there could afford to buy a home. In Southern California's San Bernardino County, where more than half of the residents can afford to a home, the minimum qualifying household annual income was $52,790.

A little over four years ago, 56 percent of California households could afford to purchase a single-family home.

Nationwide, 57 percent of households could afford a median-priced home of $232,000 in the quarter, requiring an annual income of $47,690, and monthly payments of $1,190.

― City News Service contributed to this report. Photo via Shutterstock