California’s Housing Ranking: Affordable vs. Expensive Communities

California is known for high-priced housing, especially in elite communities. Here, high prices are less of a barrier due to the high salaries of residents. In contrast, homes in gentrifying areas are priced lower but remain unreachable for long-term residents.

Housing Affordability in California

An analysis by the L.A. Times ranks California’s cities and towns based on the ratio of average home price to median household income. This measure evaluates how many years of income it would take to buy a median-priced home.

Most Affordable Cities

“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.

The Central Valley boasts higher housing supply relative to demand, making homes cheaper.

• East Niles: Home value: $251,500; Income: $55,124; Years to reach home value: 4.56
• Tulare: Home value: $329,800; Income: $72,410; Years to reach home value: 4.55
• Visalia: Home value: $371,500; Income: $81,989; Years to reach home value: 4.53
• Delano: Home value: $301,900; Income: $67,010; Years to reach home value: 4.51
• Rosamond: Home value: $352,600; Income: $79,386; Years to reach home value: 4.44
• Twentynine Palms: Home value: $268,200; Income: $62,554; Years to reach home value: 4.29
• Imperial: Home value: $360,900; Income: $90,195; Years to reach home value: 4.00
• Corcoran: Home value: $236,100; Income: $59,905; Years to reach home value: 3.94
• Lemoore: Home value: $328,300; Income: $83,724; Years to reach home value: 3.92
• Ridgecrest: Home value: $253,900; Income: $89,250; Years to reach home value: 2.84

Least Affordable Cities

“Being on a coast is more expensive. It just is,” Green said.

Coastal views and proximity to desirable industries contribute to high costs.

• San Luis Obispo: Home value: $935,100; Income: $73,685; Years to reach home value: 12.69
• Arcadia: Home value: $1,441,800; Income: $113,516; Years to reach home value: 12.70
• Newport Beach: Home value: capped at $2,000,001; Income: $156,867; Years to reach home value: 12.75
• South Pasadena: Home value: $1,640,000; Income: $127,175; Years to reach home value: 12.90
• Westmont: Home value: $653,800; Income: $50,509; Years to reach home value: 12.94
• Berkeley: Home value: $1,413,900; Income: $108,092; Years to reach home value: 13.08
• Laguna Beach: Home value: capped at $2,000,001; Income: $143,843; Years to reach home value: 13.90
• Santa Barbara: Home value: $1,570,800; Income: $106,182; Years to reach home value: 14.79
• Beverly Hills: Home value: capped at $2,000,001; Income: $132,977; Years to reach home value: 15.04
• Santa Monica: Home value: $1,755,500; Income: $114,885; Years to reach home value: 15.28

Why Southern California Tops the List

Despite high prices in Silicon Valley, most unaffordable cities are in Southern California due to elevated income levels in Northern California. Many long-time owners remain in luxury areas because of Proposition 13, keeping property taxes low.