If you live in L.A. County, preparing to buy a home today means you’d need a minimum household income of $226,000—a staggering 22% increase, or about $40,000 more than what was required just three years ago. This calculation assumes a 20% down payment and gets you in the ballpark of the $879,900 median-priced single-family home, with estimated monthly mortgage payments eating up 30% of your income. On top of that, you’d also need nearly $176,000 in cash to close.
Most households simply can’t stretch that far. Only 13% of L.A. County households could afford to buy in mid-2025, down from 16% in 2022. That small pool of qualified buyers is one reason home sales remain well below historic norms.
The problem isn’t unique to Los Angeles. Statewide, just 15% of California households can afford to purchase the $905,680 median-priced home, requiring an income of $232,400 and a monthly payment of about $5,800. Nationally, buying the $429,400 U.S. median home requires an income of $110,400, with about 34% of households able to qualify. Beyond rising home prices and interest rates, systemic factors like limited housing supply, restrictive zoning, and the end of pandemic-era Federal Reserve supports have all fueled the affordability crisis. In short, L.A. is increasingly out of reach—even for middle-income families. For many, the dream of homeownership here is slipping farther away