The percentage of households in California able to afford a median-priced home stood at 23 percent in January, a 6 percentage-point decrease compared to the same period a year ago when the Index was at 29 percent, according to a report released last Thursday by C.A.R. The January Housing Affordability Index (HAI) was unchanged from December, when it also stood at 23 points. C.A.R.'s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The index is the most fundamental measure of housing well-being in the state.
The minimum household income needed to purchase a median-priced home at $405,720 in California in January was $94,020, based on a typical 30-year, fixed-rate mortgage at 5.70 percent and assuming a 20 percent downpayment. The minimum household income needed to purchase a median-priced home at $168,700 in the U.S. in January 2004 was $39,090.
At 56 percent, the High Desert region was the most affordable C.A.R. region in the state, followed by the Sacramento region at 38 percent. The Monterey region was the least affordable in the state at 14 percent.