Major California city becomes the most unaffordable housing market in America - California Homeowners AssociationCalifornia Homeowners Association

By Emma Colton at FoxBusiness

October 31, 2021

Sacramento, California, is at the top of the list for the United States’s least affordable new homes markets.

A new study examining household incomes and comparing them with median new home construction mortgages found the California capital tying with Miami, Florida. Eighty percent of households in the Sacramento region, same as Miami, are priced out of new homes, the study from real estate-technology firm, Knock, found.

The median new construction home price in the Sacramento region is $650,000, which means residents need an income of about $128,000 to afford an average down payment of $39,000. The median household income in the area is $76,706, according to the report.

One Sacramento real estate group owner, Kelly Pleasant, said there is a shortage of homes in the area and the market has become less competitive in the last 45 days.

“Instead of maybe 10 offers (per listing), you’re seeing five offers,” Pleasant told The Sacramento Bee. “Instead of $50,000 or $60,000 over, maybe you’re getting it at list price or $20,000 over.”