So Cal Housing Market Hits Record High: What You Need to Know

Southern California’s housing market is reaching new heights, with the median price of a house now at a record-breaking $507,500. This increase is a reflection of the strong economy, with one of the longest expansions on record both locally and nationally. However, this surge in home prices is also leading to a decrease in affordability for many residents.

To afford a house at the current median price, a person would need to earn over $100,000 annually, while the median household income in the region is only about $68,000. This affordability issue is expected to worsen in 2018, as interest rates rise and supply constraints continue to drive home prices up.

The high housing prices in Southern California are also impacting the overall economy of the state. With more than half of households spending over 30% of their income on housing, there is a growing concern about the ability of residents to afford living in the area. Additionally, California is only building half as many homes per year as needed, further exacerbating the affordability crisis.

Despite the challenges posed by the soaring housing prices, there are certain jobs in Southern California that pay enough to afford a house, such as tech, business, management, and medical professions. However, the overall lack of affordable housing options is limiting the state’s potential for economic growth.

As the housing market in Southern California continues to break records, it is clear that more needs to be done to address the affordability crisis and ensure that residents can continue to live and work in the area.