{"id":2860,"date":"2026-05-21T17:03:26","date_gmt":"2026-05-21T17:03:26","guid":{"rendered":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/21\/how-much-do-i-need-to-afford-a-home-in-california-see-new-income-requirements\/"},"modified":"2026-05-21T17:03:26","modified_gmt":"2026-05-21T17:03:26","slug":"how-much-do-i-need-to-afford-a-home-in-california-see-new-income-requirements","status":"publish","type":"post","link":"https:\/\/sandiegorelocationnews.com\/index.php\/2026\/05\/21\/how-much-do-i-need-to-afford-a-home-in-california-see-new-income-requirements\/","title":{"rendered":"How much do I need to afford a home in California? See new income requirements"},"content":{"rendered":"
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Looking to relocate in California?<\/p>\n

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Nine of the most expensive cities for homebuyers are in the Golden State, according to Consumer Affairs.<\/p>\n

Read more Gavin Newsom orders California to plan for aid to state workers displaced by AI<\/a><\/p>\n

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The economic research company recently researched how much homebuyers need to earn in the nation\u2019s 200 largest metropolitan areas.<\/p>\n

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American households need to earn $120,796 a year to afford a typical home with a 10% down payment, according to the Consumer Affairs study.<\/p>\n

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However, the median household income in 2024 was $81,604.<\/p>\n

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\u201cThe income required to afford a home outpaces the median household income by 48%, pushing homeownership increasingly out of reach,\u201d Consumer Affairs contributor Becca Blanco wrote in an April 29 article, noting that the gap has widened dramatically since 2015.<\/p>\n

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\u201cAffordability has improved modestly … but it\u2019s still below normal levels,\u201d Nadia Evangelou, principal economist and director of real estate research at the National Association of Realtors, told Consumer Affairs.<\/p>\n

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Here\u2019s which California cites made the list:<\/p>\n

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Which California city requires the most income to buy a home?<\/h2>\n

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When it comes to housing affordability, San Jose was the No. 1 most expensive city in the nation in 2026, according to the new Consumer Reports study.<\/p>\n

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You\u2019d need to earn an annual income of $501,012 to put 10% down on a typical house in San Jose and keep monthly mortgage payments at or below 28% of your income, the company found.<\/p>\n

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With a median household income of $164,801 in 2024, San Jose residents make about 33% of what they\u2019d need to buy a home in the Silicon Valley, according to Consumer Affairs.<\/p>\n

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As of February, the median home sale price in San Jose was about $1.5 million, roughly $1.2 million more than the nationwide median sale price of $362,412, Consumer Affairs said.<\/p>\n

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If you put 10% down when purchasing a San Jose house at that price, your monthly payment would be $11,690.<\/p>\n

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As of Wednesday, May 20, the average San Jose home was valued at about $1.4 million, according to real estate website Zillow.<\/p>\n

Read more Gavin Newsom orders California to plan for aid to state workers displaced by AI<\/a><\/p>\n

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What are 10 most expensive cities for homebuyers?<\/h2>\n

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According to Consumer Affairs, these metro areas required the highest household incomes to afford a typical home in 2026:<\/p>\n

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  1. San Jose<\/b>: $501,012 a year<\/li>\n
  2. San Francisco<\/b>: $358,090<\/li>\n
  3. Santa Cruz<\/b>: $354,973<\/li>\n
  4. Santa Maria<\/b>: $305,535<\/li>\n
  5. Los Angeles<\/b>: $301, 221<\/li>\n
  6. San Diego<\/b>: $293,618<\/li>\n
  7. San Luis Obispo<\/b>: $280,591<\/li>\n
  8. Oxnard<\/b>: $276,805<\/li>\n
  9. Salinas<\/b>: $262,403<\/li>\n
  10. Honolulu<\/b>: $255,280<\/li>\n<\/ol>\n

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    All of the top 10 cities maintained their top 10 rankings from 2025, according to the company.<\/p>\n

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    Did other California cities make the list?<\/h2>\n

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    Santa Rosa just missed the top 10, landing at No. 11 on Consumer Affairs\u2019 list of the cities where residents must earn the most to afford homes.<\/p>\n

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    In Santa Rosa, you\u2019d need to earn $252,357 a year to afford a 10% down payment on a house and keep monthly mortgage payments at or below 28% of your income, according to the economic research company.<\/p>\n

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    You\u2019d need an annual income of $197,555 to afford a home in Sacramento, No. 21 on Consumer Affairs\u2019 list.<\/p>\n

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    Riverside was No. 22 with an annual income requirement of $197,320, and Stockton was No. 27 with a an income requirement of $182,120 a year.<\/p>\n

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    How did Consumer Affairs rank metro areas?<\/h2>\n

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    To determine the minimum income needed to afford a typical home in each metro area, Consumer Affairs said it \u201capplied the 28\/36 rule, which recommends spending no more than 28% of gross monthly income on housing.\u201d<\/p>\n

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    The economic research company pulled data from Zillow to examine home sale prices and calculate monthly home payments.<\/p>\n

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    Consumer Affairs looked at data from the U.S. Census Bureau to determine median household incomes.<\/p>\n

    Read more Concerts, carnival rides and racing pigs: Your guide to Sacramento County Fair<\/a><\/p>\n

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