Fact Check: Housing prices in California are among the highest in the United States
What We Know
Housing prices in California have consistently been higher than the national average. According to the California Housing Affordability Tracker, mid-tier homes in California are more than twice as expensive as the typical mid-tier home in the rest of the United States. Furthermore, the cost of a bottom-tier home in California is about 32% higher than a mid-tier home elsewhere in the country. The report highlights that the monthly payments for a mid-tier home in California reached nearly $5,900 in March 2024, marking an 82% increase since January 2020. In comparison, payments for a bottom-tier home exceeded $3,500, which is an 87% increase during the same period.
The report also indicates that the annual household income required to qualify for a mortgage on a mid-tier home in California was approximately $234,000 as of March 2025, which is more than double the median household income in California of $96,500 in 2023. This disparity illustrates the significant gap between housing costs and income levels in the state.
Analysis
The claim that housing prices in California are among the highest in the United States is supported by multiple data points from credible sources. The California Housing Affordability Tracker provides comprehensive statistics that demonstrate the extent of the housing crisis in California, including the dramatic increases in home prices and the corresponding rise in required income levels for potential homebuyers.
Additionally, other sources such as Zillow and Redfin confirm that the average home value in California is significantly higher than the national average, with Zillow reporting an average home value of $787,508 and Redfin indicating a median price of $859,100 as of May 2025 (Zillow, Redfin). These figures corroborate the assertion that California's housing market is one of the most expensive in the country.
While the data is consistent across various reports, it is essential to consider potential biases in the sources. The California Housing Affordability Tracker is produced by a governmental body, which typically aims for accuracy and reliability. In contrast, real estate platforms like Zillow and Redfin may have commercial interests that could influence their reporting. However, the alignment of data across these sources lends credibility to the claim.
Conclusion
The claim that "housing prices in California are among the highest in the United States" is True. The evidence presented from multiple reliable sources indicates that California's housing market is characterized by exceptionally high prices, which are significantly above the national average. The substantial gap between housing costs and median income further underscores the severity of the housing affordability crisis in the state.
