Home affordability in the Los Angeles area has gotten a bit better for potential buyers.
In Greater L.A., 16 percent of households could afford to buy a home at the median price of $837,060 in the third quarter of this year, up from 14 percent in the second quarter and small tick up from 15 percent in the third quarter of last year, Westside Current reported, citing new data from the California Association of Realtors.
At the same time, the median price of existing single-family homes in California dropped 2 percent in the third quarter compared to the second quarter. Year-over-year, however, home prices have bounced back, increasing 0.8 percent after the first decline in eight quarters earlier this year. Easing mortgage rates have likely attracted more buyers to the SoCal residential market. Housing affordability could notch up even further if lower mortgage rates emerge in the coming months of the off-season and if economic uncertainties clear up.
In Los Angeles County in particular, 12 percent of households could afford to purchase the $954,130 median-priced home in the third quarter — a slight tick down from 13 percent in the second quarter, though it’s a slight improvement from 11 percent in the third quarter of last year. In Orange County, 13 percent percent of households could afford to purchase the $1.4 million median-priced home in the third quarter of 2025, up from 12 percent in the second quarter 2025 and up from 12 percent in Q3 2024.
Affordability widens for condos and townhomes. Overall, in California, 27 percent of households statewide could afford a typical condo or townhome in the third quarter, up from 25 percent in the second quarter and the same number in the third quarter of last year. To make monthly payments on a $649,990 median-priced condo or townhome in the third quarter, residents would have to have an annual income of $163,600.
Housing affordability is still notably lower in the Golden State than nationwide. More than one third of households across the country could purchase a $426,800 median-priced home, which required a minimum annual income of $107,600 to make monthly payments. Affordability nationwide increased slightly from 35 percent in both the second quarter of 2025 and a year ago.
— Chris Malone Méndez
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