California Housing Affordability Tracker (3rd Quarter 2026) October 21, 2026

Our post provides an updated snapshot of housing affordability in California. After a rapid increase in California housing costs between 2020 and 2022, home prices have stabilized since 2022: current prices are somewhat lower than they would have been if pre-pandemic trends had continued. Despite this, fewer California households can afford to buy a home today than before 2020.

Affordability is unlikely to improve if existing homeowners–or new builders–are unwilling to sell their homes at prices prospective buyers can afford following the rapid increase in mortgage rates in 2022. A complicating factor is that most existing homeowners are "locked-in" to mortgages with rates significantly lower than currently available. About 75 percent of California homeowners have mortgage rates under 5 percent, compared to current rates of about 7.4 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 completed home sales remain low despite the number of homes for sale being 20 percent higher than two years ago.

• Alex Bentz