Housing Affordability Improves in LA
Los Angeles city homebuyers got some good news in the third quarter of 2024 with housing affordability improving slightly from the previous quarter, while fewer county house purchasers could afford a home in the same quarter, the California Association of Realtors announced Thursday.
Eleven percent of L.A. County households could afford to buy the $947,480 median-priced home in the third quarter of the year, down from 13% in the second quarter of 2024, and mirroring the 11% in third-quarter 2023, according to the association.
A minimum annual income of $237,600 was needed to make monthly payments of $5,940, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 6.63% interest rate, the report said.
In the L.A. metro area, 15% of households could afford to buy the $827,000 median-priced home in the third quarter of 2024, up from 14% in the third quarter of 2023 and up from 13% in the second quarter of this year. A minimum qualifying income of $207,600 was needed to make monthly payments of $5,190.
In Orange County — considered by CAR one of the least-affordable counties in California — 12% of households could afford to buy the $1.39 million median-priced home in the third quarter of the year, up from 11% in the last quarter of 2023, and the same percentage as second-quarter 2024, according to the association.
A minimum annual income of $350,800 was needed to make monthly payments of $8,770, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 6.63% interest rate, the report said.
Sixteen percent of California households could afford to purchase the $880,250 statewide median-priced home in the third quarter of 2024, up from 14% in second-quarter 2024 and up from 15% in third-quarter 2023, CAR said.
A minimum annual income of $220,800 was needed to make monthly payments of $5,520, including principal, interest and taxes on a 30-year fixed-rate mortgage at a 6.63% interest rate, the report said.
Also statewide, 25% of home buyers were able to purchase the $670,000 median-priced condo or townhome. A minimum annual income of $168,000 was required to make a monthly payment of $4,200, according to the association.
