California has a mix of high-priced housing, including luxurious compounds owned by Silicon Valley magnates near Stanford University and exclusive beach properties in Malibu. However, in elite areas of the state, high housing prices are balanced by high salaries among residents. Conversely, homes in urban areas undergoing gentrification tend to be less expensive, but may still be too costly for long-time residents who lived there before the boom.
The Los Angeles Times aimed to rank cities and towns across California by affordability. They used the ratio of average home price to median household income level. This metric reveals how many years of income it would take to buy a median home in a particular area. In California’s most affordable regions, an average earner would need about four years’ worth of income to purchase a home, while in the least affordable areas, buyers would require 14 years of pretax income.
Most Affordable Locations
Affordable cities in California are often located far from major job centers, mainly within the Central Valley.
“In the Central Valley, it’s just much easier to build than anywhere else in California,” said Richard Green, director and chair of the USC Lusk Center for Real Estate. With abundant land, differing regulations, and primarily single-family home markets, the housing supply is notably higher relative to demand.
Green highlighted that in these locations, incomes are typical for California but home prices are lower, reducing the ratio of cost to income. Below are the most affordable cities or census designations by the ratio of median home value to median income according to the 2024 data from the Census Bureau (minimum population 20,000).
- East Niles
Median Home Value: $251,500
Median Income: $55,124
Years of Income to Reach Home Value: 4.56
Population: 28,532
East Niles is known for its low-priced housing but entails a challenging commute to the L.A. area. - Tulare
Median Home Value: $329,800
Median Income: $72,410
Home Value to Income Ratio: 4.55
Population: 70,945
Tulare is nestled in Central Valley farmland, featuring historic downtown antique stores. - Visalia
Median Home Value: $371,500
Median Income: $81,989
Home Value to Income Ratio: 4.53
Population: 143,939
Visalia is known for its desirable downtown and minor league baseball team. - Delano
Median Home Value: $301,900
Median Income: $67,010
Home Value to Income Ratio: 4.51
Population: 51,679
Delano features agriculture as an economic driver and a rich history with United Farm Workers. - Rosamond
Median Home Value: $352,600
Median Income: $79,386
Home Value to Income Ratio: 4.44
Population: 21,473
Rosamond offers proximity to L.A. and a residential development with an airport. - Twentynine Palms
Median Home Value: $268,200
Median Income: $62,554
Home Value to Income Ratio: 4.29
Population: 27,355
Twentynine Palms has become a popular destination during the pandemic. - Imperial
Median Home Value: $360,900
Median Income: $90,195
Home Value to Income Ratio: 4.00
Population: 21,430
Imperial is nationally recognized for its battle against a data center construction. - Corcoran
Median Home Value: $236,100
Median Income: $59,905
Home Value to Income Ratio: 3.94
Population: 22,491
Corcoran’s economy revolves around agriculture and nearby prison complexes. - Lemoore
Median Home Value: $328,300
Median Income: $83,724
Home Value to Income Ratio: 3.92
Population: 27,102
Lemoore hosts the Naval Weapons Station and the Tachi Palace Casino Resort. - Ridgecrest
Median Home Value: $253,900
Median Income: $89,250
Home Value to Income Ratio: 2.84
Population: 28,225
Ridgecrest became known after a 2019 earthquake and is powered by the China Lake Air Force Base.
Least Affordable Locations
In California, coastal views and upscale communities represent premium prices, particularly linked to industries like technology and entertainment.
“Being on a coast is more expensive. It just is,” Green stated.
Below are the least affordable cities, by the ratio of median home value to median income from the 2024 Census Bureau data:
- San Luis Obispo
Median Home Value: $935,100
Median Income: $73,685
Home Value to Income Ratio: 12.69
Population: 48,491
This Central Coast college town faces challenges in home affordability despite a smaller size. - Arcadia
Median Home Value: $1,441,800
Median Income: $113,516
Home Value to Income Ratio: 12.70
Population: 55,170
Arcadia offers amenities like safe streets and excellent schools but faces political scrutiny. - Newport Beach
Median Home Value: $2,000,001
Median Income: $156,867
Home Value to Income Ratio: 12.75
Population: 83,845
Newport Beach’s oceanfront locations and luxury shopping contribute to high property values. - South Pasadena
Median Home Value: $1,640,000
Median Income: $127,175
Home Value to Income Ratio: 12.90
Population: 26,068
Known for tree-lined streets and award-winning schools, South Pasadena is prime real estate. - Westmont
Median Home Value: $653,800
Median Income: $50,509
Home Value to Income Ratio: 12.94
Population: 34,123
This area in South Los Angeles experiences rapid real estate price increases. - Berkeley
Median Home Value: $1,413,900
Median Income: $108,092
Home Value to Income Ratio: 13.08
Population: 120,257
Once known for its free speech movement, Berkeley now demands high real estate prices. - Laguna Beach
Median Home Value: $2,000,001
Median Income: $143,843
Home Value to Income Ratio: 13.90
Population: 28,532
Laguna Beach is an art-centered coastal town, with homes topping $2 million. - Santa Barbara
Median Home Value: $1,570,800
Median Income: $106,182
Home Value to Income Ratio: 14.79
Population: 87,779
Though housing is expensive, Santa Barbara has a challenging commute to L.A. - Beverly Hills
Median Home Value: $2,000,001
Median Income: $132,977
Home Value to Income Ratio: 15.04
Population: 31,624
The glamorous Beverly Hills has soaring real estate prices and is a symbol of wealth. - Santa Monica
Median Home Value: $1,755,500
Median Income: $114,885
Home Value to Income Ratio: 15.28
Population: 91,169
At the top of the list, Santa Monica has a desirable location despite income discrepancies.
Bay Area Housing Dynamics
The Bay Area, despite high home prices, isn’t as represented among least affordable locations. This is largely due to high incomes driven by the tech industry.
“Incomes are just incredibly high in the Bay Area,” Green noted, attributing it to the tech boom.
Long-time Owners Impact on Housing
Many Southern California residents bought homes in luxury areas decades ago and resisted selling, influencing the market dynamic.
“California has, I think, the slowest mobility of any state in the country,” Green commented. Long-time owners enjoy the benefits of Proposition 13, keeping property taxes low.
Understanding these dynamics offers insight into California’s complex housing market.