California is known for its high-priced housing. From expansive compounds in the hills above Stanford University to beachside properties in Malibu, the state offers diverse options. Yet, in many of California’s elite communities, high prices are not a barrier due to equally high salaries. Conversely, homes in gentrifying urban areas are priced lower. However, these prices can be difficult for long-term residents who were there before the neighborhood booms.

Affordability Rankings

The Los Angeles Times analyzed affordability across California’s cities and towns based on the ratio of average home price to median household income. This metric reflects the number of years needed to buy an average home with an area’s median income. In the state’s most affordable places, it takes about four years of income. In less affordable areas, buyers need over 14 years of income.

Most Affordable Locations

These places are often distant from major job hubs, primarily in the Central Valley. Richard Green of the USC Lusk Center for Real Estate highlights easier construction in these areas, resulting in a higher housing supply relative to demand.

• East Niles: Median home value – $251,500; Median income – $55,124; Home value to income ratio – 4.56; Population – 28,532. A two-hour commute from LA.
• Tulare: Median home value – $329,800; Median income – $72,410; Home value to income ratio – 4.55; Population – 70,945.
• Visalia: Median home value – $371,500; Median income – $81,989; Home value to income ratio – 4.53; Population – 143,939.
• Delano: Median home value – $301,900; Median income – $67,010; Home value to income ratio – 4.51; Population – 51,679.
• Rosamond: Median home value – $352,600; Median income – $79,386; Home value to income ratio – 4.44; Population – 21,473.
• Twentynine Palms: Median home value – $268,200; Median income – $62,554; Home value to income ratio – 4.29; Population – 27,355.
• Imperial: Median home value – $360,900; Median income – $90,195; Home value to income ratio – 4.00; Population – 21,430.
• Corcoran: Median home value – $236,100; Median income – $59,905; Home value to income ratio – 3.94; Population – 22,491.
• Lemoore: Median home value – $328,300; Median income – $83,724; Home value to income ratio – 3.92; Population – 27,102.
• Ridgecrest: Median home value – $253,900; Median income – $89,250; Home value to income ratio – 2.84; Population – 28,225.

Least Affordable Locations

These places often feature ocean views and upscale neighborhoods linked to industries like technology and entertainment. Coastal locations inherently carry higher costs.

• San Luis Obispo: Median home value – $935,100; Median income – $73,685; Home value to income ratio – 12.69; Population – 48,491.
• Arcadia: Median home value – $1,441,800; Median income – $113,516; Home value to income ratio – 12.70; Population – 55,170.
• Newport Beach: Median home value – approx. $2 million; Median income – $156,867; Home value to income ratio – 12.75; Population – 83,845.
• South Pasadena: Median home value – $1,640,000; Median income – $127,175; Home value to income ratio – 12.90; Population – 26,068.
• Westmont: Median home value – $653,800; Median income – $50,509; Home value to income ratio – 12.94; Population – 34,123.
• Berkeley: Median home value – $1,413,900; Median income – $108,092; Home value to income ratio – 13.08; Population – 120,257.
• Laguna Beach: Median home value – approx. $2 million; Median income – $143,843; Home value to income ratio – 13.90; Population – 28,532.
• Santa Barbara: Median home value – $1,570,800; Median income – $106,182; Home value to income ratio – 14.79; Population – 87,779.
• Beverly Hills: Median home value – approx. $2 million; Median income – $132,977; Home value to income ratio – 15.04; Population – 31,624.
• Santa Monica: Median home value – $1,755,500; Median income – $114,885; Home value to income ratio – 15.28; Population – 91,169.

Regional Variations

Southern California dominates the least affordable list despite high home prices in Silicon Valley. This is partly due to the tech-driven income levels in the Bay Area. Long-term homeowners preserve their historic low housing costs due to past purchases and state policies like Proposition 13, which caps property taxes.