California Housing Affordability Holds Steady in Third Quarter 2026, C.A.R. Reports

According to a report released by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.), California housing affordability held steady in the third quarter of 2026. Lower home prices helped offset higher mortgage rates, keeping monthly housing costs unchanged from the previous quarter.

Key Affordability Metrics

• Single-Family Homes: Nineteen percent of California households could afford to purchase the median-priced single-family home of $894,630 in the third quarter of 2026, unchanged from both the second quarter and the previous year.
• Condos and Townhomes: Thirty-one percent of households could afford a median-priced condo or townhome priced at $640,000, up from 30 percent in both the prior quarter and a year ago.
• Income and Payments: A minimum qualifying annual income of $228,000 was required for single-family homes, with monthly payments (including principal, interest, taxes, and insurance) steady at $5,700. The effective 30-year fixed mortgage rate rose to 6.80 percent.

County-Level Variations

Affordability varied significantly across the 53 tracked counties:

• Most Affordable: Lassen remained the most affordable county (61 percent able to afford), followed by Trinity (43 percent) and Tuolumne (42 percent).
• Least Affordable: Mono was the least affordable at 8 percent, followed by Santa Barbara (12 percent) and Monterey (13 percent).
• Highest Income Requirements: San Mateo required the highest minimum qualifying income at $578,400, followed by San Francisco at $509,600.

Practical Implications and Verification

Prospective homebuyers face persistent affordability challenges due to elevated borrowing costs. Readers can verify original data and historical trends by visiting the official C.A.R. website and reviewing their published housing market reports.