California Partnership for the San Joaquin Valley | Housing Affordability at 10-Year Low in California

Housing Affordability at 10-Year Low in California

November 2, 2017

California’s housing affordability hit a 10-year low as tight housing inventory drove home prices higher and reduced purchasing power for home buyers in the third quarter, primarily in previously more affordable regions such as the Inland Empire and Central Valley, the California Association of Realtors (C.A.R.) reported Thursday.

The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California in third-quarter 2017 fell to 28%, down from 29% in the second quarter of 2017 and down from 31% in the third quarter a year ago, according to C.A.R.’s Traditional Housing Affordability Index (HAI). This is the 18th consecutive quarter that the index has been below 40% and the lowest since third-quarter 2015. California’s housing affordability index hit a peak of 56% in the first quarter of 2012.

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