Five Central Valley counties and one in southern California were the most affordable areas in the state to buy a home during the second quarter of 2016, according to a report released Wednesday.
Kings County took the top honor where 56 percent of the potential homebuyers could afford to purchase the county’s median-priced house at $212,660, according to the California Association of Realtors. A buyer would have to make at least $41,697 annually to afford the home.
That’s a slight decrease from the first quarter of the year when 58 percent could afford to purchase and down from the same time a year ago when affordability was at 62 percent.
Despite the decline, Kings County still remained at the top alongside San Bernardino County where affordability is also at 56 percent. Kern County follows at 54 percent. Half of all buyers in Fresno, Madera and Tulare counties could afford to buy a home. In Fresno, a buyer would have to make $46,081 a year to buy a $235,020 house.
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Affordability levels hit highs in the Valley during the first quarter of 2012 when 72 percent of Fresno’s buyers could afford to buy a home.
On the flip side, only 13 percent of buyers could afford a home in San Francisco where the median home price is $1.3 million. San Mateo (14 percent) and Santa Cruz (17 percent), where the median-home price is $1.3 million and $799,000 respectively, round out the top three least affordable places to buy.
Housing Affordability Index
San Luis Obispo
Percentage of homebuyers who can afford to buy a home. Source: California Association of Realtors