Housing Affordability Improves In 2025; Riverside County Outpaces State

RIVERSIDE, CA — Housing affordability in California improved slightly in 2025, with Riverside County remaining more attainable than coastal markets, although disparities among demographic groups persisted, according to a report released Friday by the California Association of Realtors.

According to CAR, 19 percent of California households earned enough income to purchase a median-priced home in 2025, up from 18% the previous year, the association reported.

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In Riverside County, 28 percent of all households could afford a median- priced home, well above the statewide average. Among demographic groups, 33 percent of Asian households and 29 percent of white non-Hispanic households could afford a home, compared to 25 percent of Hispanic/Latino households and 23 percent of Black households, according to the report.

Statewide, affordability varied widely by demographic group. Twenty- nine percent of Asian households and 23 percent of white non-Hispanic households could afford a median-priced home, compared to 11 percent each for Black and Hispanic/Latino households.

The statewide median price for a detached home was $875,550 in 2025. A minimum annual income of $221,200 was required to afford monthly payments of about $5,530, including taxes and insurance, assuming a 20 percent down payment and a 30-year fixed-rate mortgage at 6.71 percent, according to the association.

The gap between Black households and the overall population widened to 8.7 percentage points in 2025, while the gap for Hispanic/Latino households narrowed slightly to 7.9 percentage points, the report found.

Statewide homeownership rates also varied widely, with 64.4 percent for white households, 61.6 percent for Asian households, 45.9 percent for Hispanic/Latino households, and 36.5 percent for Black households, according to U.S. Census data cited in the report.

The association said affordability gaps are expected to remain wide in 2026 even if mortgage rates decline, as home prices are projected to continue rising.