Home Prices Keep Climbing In Riverside County; Here's What It Takes To Buy

RIVERSIDE COUNTY, CA — California housing affordability worsened in the second quarter of 2026 as rising home prices and higher mortgage rates pushed borrowing costs out of reach for most state residents, according to the California Association of Realtors.

Last month in Riverside County, costs pushed even higher.

At the statewide level, only 19% of California households could afford to purchase a median-priced, existing single-family home in the second quarter. That figure was down from 22% in the first quarter, though up from 17% in the second quarter of 2025, according to C.A.R.

The statewide median single-family home price rose 8.7% from the previous quarter to $916,750. Buying at that price point required a minimum annual income of $228,400 to afford monthly payments of $5,710, including taxes and insurance.

In Riverside County, the median price for an existing single-family home reached $649,000 in July. That marked a 2.2% increase from $635,000 in June and a 3% gain compared to July 2025. To afford that pricey purchase, a borrower needs an annual income close to $170,000, according to C.A.R.

The price gains occurred alongside a pullback in local sales activity. Riverside County home sales dropped 13.7% from June and were down 2.6% from a year earlier.

Elevated borrowing costs contributed to the broader market slowdown. The average effective mortgage rate climbed to 6.54% in the second quarter, up from 6.24% in the first quarter.

"July's housing market performance reflected the ongoing challenges under the current economic and lending environment, but the market continues to show signs of resilience," C.A.R. Senior Vice President and Chief Economist Jordan Levine said in a statement. "Higher mortgage rates and financial market volatility in the past two months weighed on buyer demand, resulting in softer sales activity and subdued price growth in July."

Statewide sales of existing single-family homes fell 6% from June to a seasonally adjusted annualized rate of 263,170 units in July. The figure remained below the 300,000-unit threshold for the 46th consecutive month. California's statewide median price eased 1.9% in July to $887,680, though it remained 0.3% higher than a year earlier.

Affordability for condos and townhomes also tightened. Statewide, 30% of households could afford the $670,000 median-priced condo in the second quarter, requiring an annual income of $166,800 to cover the $4,170 monthly payment.

By comparison, 40% of households nationwide could afford the U.S. median-priced home of $434,900 in the second quarter, which required a minimum annual income of $108,400.

C.A.R. President Tamara Suminski noted that recent improvements in supply and a slight easing of interest rates could offer prospective buyers some relief.

"Despite a slower start to the second half of 2026, improved supply conditions in July, combined with the recent decline in mortgage rates, could provide some relief to buyers and give them more options to choose from as the market transitions into the off-peak season," Suminski said.

—City News Service contributed to this report.