In Orange County, the required household income to purchase a median-priced home has surged by 25% over the past three years. According to the California Association of Realtors, a household now needs an income of $367,600 to afford a $1.44 million median-priced single-family home in the area. This figure represents an increase of $74,400 since 2022.
The rise in required income is largely due to higher interest rates and increased home prices. In 2025, the interest rate stands at 6.9%, compared to 5.4% three years ago. Additionally, the price of an Orange County home has risen by $131,500, or 10%, since the second quarter of 2022. These factors have contributed to a monthly mortgage payment increase of $1,860, bringing the total to $9,190 per month.
Despite these rising costs, only 12% of Orange County households can afford to buy a home, a figure that has remained unchanged since 2022. The limited number of qualified buyers is one reason why homebuying in the area is 29% below historical norms, according to the Orange County Register…