August 7, 2026

While Pols Promise “Affordability”, California Realtor Reports Says, Nah

The California Association of Realtors releases it’s report on affordability for the second quarter of 2026. And it is not a pretty picture. They report:

California housing affordability retreated in the second quarter after reaching a four-year high in early 2026. Higher mortgage rates and rebounding home prices increased borrowing costs for prospective buyers.

Nineteen percent of California households could afford to purchase the $916,750 median-priced home in the second quarter of 2026, down from 22 percent in the first quarter but up from 17 percent in the second quarter of 2025.
A minimum annual income of $228,400 was needed to make monthly payments of $5,710, including principal, interest, taxes and insurance on a 30-year fixed-rate mortgage at a 6.54 percent interest rate.
Thirty percent of home buyers could afford the $670,000 median-priced condo or townhome. A minimum annual income of $166,800 was required to make a monthly payment of $4,170.
Housing affordability declined in 44 of the 53 counties tracked by C.A.R., compared to the first quarter of 2026, while four counties improved and five remained unchanged. Compared to a year ago, affordability improved in 41 counties, declined in six and was unchanged in six others.
Nineteen percent of the state’s home buyers could afford to purchase a median-priced, existing single-family home in California in the second quarter, down from 22 percent in the first quarter of 2026 but up from 17 percent in second-quarter 2025, according to C.A.R.’s Traditional Housing Affordability Index (HAI). While affordability improved from a year ago, it remained historically constrained as elevated mortgage rates and high home prices continued to challenge buyers throughout the state.

Politicians love to talk about affordability. You want your house to be worth less? Probably not. When the value of your house and the houses in your neighborhood increase. ‘affordability’ decreases–so it cuts both ways. Prices are high–but but when you talk about affordability, be careful what you wish for.