RivCo Residents Look To 'More Affordable' Condos Over Single Family Homes, Report Says

RIVERSIDE COUNTY, CA — Twenty-three percent of Riverside County households could afford to purchase the $625,000 median-priced home in the third quarter of 2025, up from 21% in second-quarter 2025 and 21% in third-quarter 2024, the California Association of Realtors announced Thursday.

The statewide median price of existing single-family homes in California fell 2.0% in the third quarter of 2025 compared to the previous quarter, reflecting a cooling in market competition, CAR determined.

However, on a year-over-year basis, home prices rebounded -- rising 0.8% after posting the first decline in eight quarters earlier this year -- as easing mortgage rates encouraged more buyers to return to the market. With the market transitioning into the off-season, home prices are expected to moderate further as seasonal factors kick in, CAR reported.

If lower mortgage rates materialize in the months ahead and economic uncertainties subside, housing affordability could see some slight improvement in the next couple of quarters.

Read also: A Golden State Renter's Market: How Apartment Rents Compare Across California

More California households (27%) could afford a typical condo/townhome in third-quarter 2025, rising from 25% both in second-quarter 2025 and in third-quarter 2024. An annual income of $163,600 was required to make the monthly payment of $4,090 on the $649,990 median-priced condo/townhome in the third quarter of 2025, according to CAR.

In the Los Angeles metro area, 16% of households could afford to purchase the $837,060 median-priced home in the third quarter of 2025, up from 14% in second-quarter 2025 and up from 15% in third-quarter 2024, CAR reported.

In Orange County, 13% percent of households could afford to purchase the $1.4 million median-priced home in the third quarter of 2025, up from 12% in second-quarter 2025 and up from 12% in third-quarter 2024.

In San Diego County, 13% of households could afford to purchase the $1 million median-priced home in the third quarter of 2025, the same number as in second-quarter 2025 and up from 12% in third-quarter 2024, CAR determined.

The highest median price in California in the third quarter was San Mateo County's $2.08 million. Lassen remained the most affordable county in California during the quarter, with homes selling at $257,500.

Compared with California, CAR found, more than one-third of the nation's households could afford to purchase a $426,800 median-priced home, which required a minimum annual income of $107,600 to make monthly payments of $2,690. Nationwide, affordability edged up from 35% in both the second quarter of 2025 and a year ago.

Read also:

A Golden State Renter's Market: How Apartment Rents Compare Across California