Housing Affordability: Deep Disparities in California

Housing affordability in California saw a slight improvement in 2025, with 19% of households now able to purchase a median-priced home, up from 18% in 2024. However, Southern California remains a challenge, particularly in Los Angeles County where only 8% of Black households and 9% of Hispanic or Latino households can afford the median home. Orange County mirrors this struggle. While gains were seen across all groups, gaps persist, with 29% of Asian households and 23% of white non-Hispanic households able to afford a median home, compared to 11% each for Black and Hispanic or Latino households. Homeownership rates also reflect these disparities, with 64.4% for whites and 36.5% for Black households. These inequities are likely to persist into 2026, even with potential drops in mortgage rates, as home prices are expected to continue rising.

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