The surge in home prices compared with income growth in the 10 largest California metros during the past six years illustrates the scope of The Golden State's affordability crisis.
Based on an analysis using pay stats from the US Bureau of Economic Analysis and housing indexes by mortgage tech firm ICE, average monthly mortgage payments in California have doubled during this period while typical incomes rose about 36%, the Orange County Register reported.
In 2018, payments on a median-priced home purchase ran slightly more than $2,000 monthly with an average 4.3% mortgage rate, assuming a 20% down payment. The monthly payment accounted for 22% of the average income for a household of two, which was about $109,000.
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