8 California Cities Where the Average Family Can’t Afford a Starter Home

Based on median home prices and the median household income, the average American can afford a starter home — but just barely.

The monthly housing payment for the typical U.S. starter home that sold in July was $1,981, which means that homebuyers must earn $79,252 annually to afford the payments, Redfin reported. The typical U.S. household earns $83,966, so those payments are just within the affordability range.

However, there is a gap between the income required to afford a starter home and the local median household income in many major cities across the U.S. — and the situation is particularly dire in California.

According to the Redfin data, homebuyers must earn double the local median income to buy a starter home in two major California cities. And in all of the California cities in the top 50 most-populated metros, starter homes are unaffordable for the average household.

Here’s a look at the California cities where the average family can’t afford a starter home.

In some cases, buying a starter home this year may be a waste of money — here are five reasons why.

• Median sale price of starter home: $740,000
• Median household income: $122,192
• Income needed to afford a starter home: $251,302

• Median sale price of starter home: $615,000
• Median household income: $93,197
• Income needed to afford a starter home: $184,477

• Median sale price of starter home: $629,000
• Median household income: $135,725
• Income needed to afford a starter home: $194,004

• Median sale price of starter home: $408,000
• Median household income: $90,677
• Income needed to afford a starter home: $122,884

• Median sale price of starter home: $430,000
• Median household income: $100,152
• Income needed to afford a starter home: $146,027

• Median sale price of starter home: $652,750
• Median household income: $108,352
• Income needed to afford a starter home: $197,978

• Median sale price of starter home: $950,000
• Median household income: $159,665
• Income needed to afford a starter home: $285,426

• Median sale price of starter home: $970,000
• Median household income: $170,034
• Income needed to afford a starter home: $299,414

Data is sourced from Redfin and is accurate as of July 2024.