Californians spend ‘almost half their income’ on a home. See 10 priciest spots

Owning a home in California comes with a high price tag.

Many Californians must spend nearly half of their income on mortgage payments, according to a report from Realtor.com.

This makes the Golden State the “third least affordable state in the country” for homeownership, behind Montana and Hawaii.

It’s even less affordable than New York and Massachusetts, the real estate website found.

“For years, the standard advice was to not pay more than one-third of your income to keep a roof over your head, but that ‘rule’ has become increasingly outdated,” Realtor.com said in a Jan. 29 report.

None of California’s largest metropolitan areas have median-priced homes that are affordable for households earning the median income under the traditional 30% rule, according to the report.

Where are homebuyers spending the largest share of their income on mortgage payments?

According to Realtor.com, here’s the 10 most expensive areas for homeownership in California:

How much income do I need to spend to buy a home in California?

With California’s median home price at about $697,000, households must spend roughly 48.8% of their income on housing, Realtor.com said.

The state’s median household income is $95,065.

“The squeeze is even worse in the state’s large metros,” the real estate website said.

Where are homeowners spending the most on a mortgage?

The metro area that includes Los Angeles, Long Beach and Anaheim tops the list of California spots where homeowners spend the largest share of their income on mortgage payments.

In these Southern California cities, the typical household needs to put 72.4% of its income toward a mortgage, according to Realtor.com.

According to Realtor.com, these were the top 10 California metro areas where homeowners spend the most of their income:

1. Los Angeles-Long Beach-Anaheim

• Share of income spent on mortgage payment: 72.4%
• Median listing price: $994,500

2. San Diego-Chula Vista-Carlsbad

• Share of income spent on mortgage payment: 58%
• Median listing price: $899,000

3. Oxnard-Thousand Oaks-Ventura

• Share of income spent on mortgage payment: 55.3%
• Median listing price: $899,999

4. San Jose-Sunnyvale-Santa Clara

• Share of income spent on mortgage payment: 53.7%
• Median listing price: $1,265,000

5. Riverside-San Bernardino-Ontario

• Share of income spent on mortgage payment: 44.9%
• Median listing price: $581,495

6. San Francisco-Oakland-Fremont

• Share of income spent on mortgage payment: 43.8%
• Median listing price: $879,487

7. Stockton-Lodi

• Share of income spent on mortgage payment: 42.5%
• Median listing price: $567,350

8. Sacramento-Roseville-Folsom

• Share of income spent on mortgage payment: 42.4%
• Median listing price: $596,500

9. Fresno

• Share of income spent on mortgage payment: 41.4%
• Median listing price: $445,000

10. Bakersfield-Delano

• Share of income spent on mortgage payment: 39.6%
• Median listing price: $395,000

“The large metro areas of California have always been challenging for buyers,” Coldwell Banker agent Cara Ameer told Realtor.com. “Most incomes have made it very difficult to afford a single-family home and that was before interest rates and insurance went up.”

Is it cheaper to rent or buy in California?

For many Californians, Realtor.com said, homeownership is out of reach because mortgage payments cause such a “big bite taken out of income.”

As a result, renting becomes the only realistic option.

“Their rent is more affordable than buying and they don’t have to be responsible for the additional costs with maintenance, upkeep, (homeowners association) fees, taxes and all that goes along with owning a property,” Ameer said.

Even for those who manage to afford a mortgage, there’s often little left over for renovations, Realtor.com said, so “buyers prefer turnkey” homes.

If a home needs major repairs, it can be difficult to sell, Ameer said.

Other real estate experts point to the lack of new construction as the main reason prices remain so high.

“Demand remains strong, while housing production has lagged for decades,” Richard Redmond, a San Rafael-based mortgage broker, told Realtor.com. “Too many people, not enough homes.”

How did Realtor.com come up with its findings?

Realtor.com analyzed where homeowners spend the largest share of their income using a mix of housing data, economic models and industry statistics.

The research tracked market activity and trends to provide a clear image of housing conditions at both a state and local level.

The Jan. 29 report looked at California’s housing factors including home prices and affordability.

This story was originally published February 10, 2026 at 5:00 AM.

Angela Rodriguez

The Modesto Bee

279-386-2738

Angela Rodriguez is a service journalism reporter for The Bee. She is a graduate of Sacramento State with a bachelor’s degree in journalism. During her time there, she worked on the State Hornet covering arts and entertainment.