California Housing Affordability Tracker (1st Quarter 2026) April 20, 2026

Our post provides an updated snapshot of housing affordability in California. Over the last few years, we have seen a rapid increase in California housing costs, driven by a dramatic increase in home prices and mortgage rates between 2020 and 2022. Home prices have stabilized since 2022: current prices are roughly the same as they would have been if trends pre-pandemic had continued. Despite this, fewer California households can afford to buy a home today than before 2020.

Prices are unlikely to decline if existing homeowners--or new builders--are unwilling to sell their homes at prices prospective buyers can afford. One factor is the rapid increase in mortgage rates in 2022. After the increase, most existing homeowners are "locked-in" to mortgages with rates significantly lower than currently available. About 77 percent of California homeowners have mortgage rates under 5 percent, compared to current rates of about 6.2 percent. These homeowners face a significant additional financial cost to moving, further limiting the number of homes available for sale. This dynamic may explain why home sales remain low despite an increase in the number of homes listed for sale in 2024 and early 2025.

• Alex Bentz