Housing affordability in California improved slightly in 2025, but San Diego County remained among the least affordable markets, while significant gaps persisted for Black households, according to a report released Friday by the California Association of Realtors.
According to CAR, 19% of California households earned enough income to purchase a median-priced home in 2025, up from 18% the previous year.
In San Diego County, affordability levels were among the lowest in the state, with 17% of all households able to afford a median-priced home. Among demographic groups, 23% of Asian households and 21% of white non-Hispanic households could afford a home, compared to just 11% of Hispanic/Latino households — among the lowest rates statewide — and 11% of Black households, according to the report.
Statewide, affordability varied widely by demographic group. Twenty- nine percent of Asian households and 23% of white non-Hispanic households could afford a median-priced home, compared to 11% each for Black and Hispanic/Latino households.
The statewide median price for a detached home was $875,550 in 2025. A minimum annual income of $221,200 was required to afford monthly payments of about $5,530, including taxes and insurance, assuming a 20% down payment and a 30-year fixed-rate mortgage at 6.71%, according to the association.
The gap between Black households and the overall population widened to 8.7 percentage points in 2025, while the gap for Hispanic/Latino households narrowed slightly to 7.9 percentage points, the report found.
Statewide homeownership rates also varied widely, with 64.4% for white households, 61.6% for Asian households, 45.9% for Hispanic/Latino households, and 36.5% for Black households, according to U.S. Census data cited in the report.
The association said affordability gaps are expected to remain wide in 2026 even if mortgage rates decline, as home prices are projected to continue rising.
