What Income Do You Need to Afford a California Home?
The median price of a home in California has risen about $120,000 in the past 3 years. This makes home ownership difficult for many, but not impossible. As of January of 2015 the median sales price for a home was $393,000 according to Zillow.
So this means that a household would likely have to make around $78,000 per year to afford the average home assuming you can afford a 20% down payment. Currently, two thirds of California households make less than $78,000 a year.
It is important to note that you would 0nly have to make $27,000 per year in the farming town of Tulare to own a home; whereas in Palo Alto you would need to make $442,000, thus showing that location does matter.
If you are wondering how much income you need in order to be able to afford a home in a certain area of California, an interactive breakdown was done in order to show you. Just click this link.
If you or someone you know is looking to buy or sell a home in Southern California, then please consider contacting The Wise Team at 714-698-WISE (9473).