All four California counties where it takes seven figures to buy a home can be found in the Bay Area, and they were all among the 10 in the state that saw housing affordability increase from the fourth quarter of 2017.
Homes in California and the nine-county Bay Area were slightly more affordable than they were in the second quarter, though less than one-third of households meet the minimum income requirements to qualify for a mortgage. Meanwhile, affordability conditions in Los Angeles County trended in the opposite direction.
The number of Golden State residents who could afford to purchase a home declined in the most recently completed quarter, with more than 80 percent of counties less affordable than they were one year ago.
Home price gains continue to outstrip wage growth as the second quarter comes to an end, with three Bay Area counties ranking among the nation’s five least affordable.
California and Bay Area housing affordability inched up quarter over quarter, but the state is home to all 10 of the least-affordable major real estate markets in America.
More than two-thirds of U.S. housing markets were not affordable in the first quarter of this year — including all major counties in California
Less than one in three Californians could afford to purchase a home in the fourth quarter, with affordability conditions declining in every Bay Area county from one year earlier.
Inventory shortages continue to drive up Golden State home prices, further reducing the number of households that can afford to purchase a home. Here in the Bay Area, affordability improved slightly from the second quarter, though four local counties have the most difficult conditions in the state.
Some welcome news for Bay Area home shoppers: Affordability increased in every local county in the third quarter. Unfortunately, the region’s home price growth continues to outpace wage growth for the most part.