Buying a home in California is a significant financial challenge. The typical home costs $734,700 — that's 7.4× of the typical household income of $99,122 a year. A family saving their entire income would need 7.4 years just to cover the purchase price, before factoring in mortgage interest, property taxes, or maintenance costs.
Renters face severe pressure. The typical rent in California is $2,036 a month, and 53% of renters spend more than 30% of their income on housing — the point at which most financial advisers say rent becomes unaffordable. That figure is 17% higher than the national average of 45%.
25.6% of California homeowners with a mortgage spend more than 30% of their income on housing — well above the national average of 16.1%.