California is dotted with high-priced housing, from expansive compounds snapped up by the Silicon Valley titans in the hills above Stanford University to the prime beach spreads on the sand in Malibu.
But in some of the state’s most elite communities, high prices are less of a barrier because the people who live there have equally high salaries.
By contrast, homes in gentrifying urban areas go for much less. But those prices might actually be farther out to reach for many residents who have been living there well before the boom.
The L.A. Times set out to rank the most and least affordable cities and towns in the state by the ratio of average home price to median household income level. Put another way, it’s the number of years of income it would take to buy the median home in a given area.
In California’s most affordable locales, around four years’ worth of income for an average earner would be enough to purchase the average home. In the least affordable places, home buyers would need 14 years of pretax income.
Most affordable
It’s not surprising these places are far from major job centers, many in the Central Valley.
“In the Central Valley, it’s just much easier to build than anywhere else in California,” said Richard Green, director and chair of the USC Lusk Center for Real Estate. With lots of land, a different regulatory climate and mostly single-family home markets, housing supply is much higher relative to demand. “It’s much easier to produce stock in those places and so it’s going to be cheaper,” he said.
In some of the places on our list, residents have “typical incomes for California and much lower prices,” Green said, bringing the ratio of cost to income down.
Below are the most affordable cities or census designations in California, as defined by the ratio of median home value to median income, per the 2024 data from the Census Bureau. Minimum population 20,000.
10. East Niles
- Median home value: $251,500
- Median income: $55,124
- Years of income to reach home value: 4.56
- Population: 28,532
This unincorporated community sits on the eastern edge of the Bakersfield metro area. Eastern Bakersfield has several communities known for low-priced housing. But it’s a pretty tough commute if you work in the L.A. region: two hours each way without traffic.
9. Tulare
- Median home value: $329,800
- Median income: $72,410
- Home value to income ratio: 4.55
- Population: 70,945
Set in the heart of Central Valley farmland, Tulare is known for its historic downtown with many antique stores and affordable housing tracts. It’s nearly three hours to L.A. The region is a top dairy producer and hosts an annual agriculture expo.
8. Visalia
- Median home value: $371,500
- Median income: $81,989
- Home value to income ratio: 4.53
- Population: 143,939
The county seat of Tulare County, Visalia has been appearing in some national lists of hidden, affordable communities. The growing city is known for its historic, architectural, desirable downtown and minor league baseball team, the Rawhide.
7. Delano
- Median home value: $301,900
- Median income: $67,010
- Home value to income ratio: 4.51
- Population: 51,679
Located north of Bakersfield and more than two hours from L.A., Delano is best known as the historic home of the United Farm Workers. Its economy is driven by agriculture and two nearby state prisons.
6. Rosamond
- Median home value: $352,600
- Median income: $79,386
- Home value to income ratio: 4.44
- Population: 21,473
Rosamond is relatively close to L.A.: a 90-minute drive over the Kern County line into the Antelope Valley. It has a deep aviation heritage given its proximity to Edwards Air Force Base. Have a plane? It’s home to a residential development/airport, called Rosamond Skypark.
5. Twentynine Palms
- Median home value: $268,200
- Median income: $62,554
- Home value to income ratio: 4.29
- Population: 27,355
This Mojave Desert community near Joshua Tree National Park saw its profile rise as city folks moved out there during the pandemic. But it’s long been a fascinating destination, for its beauty, desolation and mystery. The iconic national park as well as a military installation are big draws.
4. Imperial
- Median home value: $360,900
- Median income: $90,195
- Home value to income ratio: 4.00
- Population: 21,430
This small town in the heart of the sweltering Imperial County is now making national headlines for fighting construction of a data center. It’s a tough location for a commute to the big city, given it is two hours east of San Diego.
3. Corcoran
- Median home value: $236,100
- Median income: $59,905
- Home value to income ratio: 3.94
- Population: 22,491
Situated in the Central Valley, this Kings County city is all about agriculture as well as corrections; it’s home to a major state prison complex. It’s not far from Tulare Lake, the once massive body of water that came back to life in 2023due to epic rains and runoff.
2. Lemoore
- Median home value: $328,300
- Median income: $83,724
- Home value to income ratio: 3.92
- Population: 27,102
This is the second Kings County city on the list. Lemoore is home the Naval Weapons Station Lemoore as well as the Tachi Palace Casino Resort. It’s also fairly close to Hanford, which is Kings’ county seat and largest city.
1. Ridgecrest
- Median home value: $253,900
- Median income: $89,250
- Home value to income ratio: 2.84
- Population: 28,225
Most of the world heard about Ridgecrest in 2019 when a 7.1 magnitude temblor and several big aftershocks rocked the state. Located off the 395 Freeway in eastern Kern County (the third Kern town on the list), it’s a two-hour-30-minute drive to L.A. The big economic driver is the nearby China Lake Air Force Base.
Most expensive
Most Californians know you pay for ocean views. Upscale bedroom communities also do very well, especially connected to desirable industries like technology and entertainment.
“Being on a coast is more expensive. It just is,” Green said.
This list checks many of those boxes, with a few surprises.
Below are the least affordable cities in California, as defined by the ratio of median home value to median income, per the 2024 data from the Census Bureau.
10. San Luis Obispo
- Median home value: $935,100
- Median income: $73,685
- Home value to income ratio: 12.69
- Population: 48,491
The college town on the Central Coast has a median home value of less than $1 million dollars, which might seem like a bargain for major metro areas. But for a relatively small city, it makes affording a home tough.
9. Arcadia
- Median home value: $1,441,800
- Median income: $113,516
- Home value to income ratio: 12.70
- Population: 55,170
The upscale San Gabriel Valley city has been in the news latest for allegations of Chinese infiltration into local government as well as the bizarre Arcadia baby home. But Arcadia has long been known for its safe streets, excellent schools and other amenities including Santa Anita race track, the Arboretum and Santa Anita shopping mall.
8. Newport Beach
- Median home value: $2,000,001 (note: Census data caps median home values at this level)
- Median income: $156,867
- Home value to income ratio: 12.75
- Population: 83,845
Again, no surprise here. An earlier Times analysis found Newport Beach has three of the state’s top 10 ZIP Codes for highest home values. Oceanfront property, hillside views and a lot of high-end shopping have long made Newport a top destination for the wealthy.
7. South Pasadena
- Median home value: $1,640,000
- Median income: $127,175
- Home value to income ratio: 12.90
- Population: 26,068
Award-winning schools, a historic main street and close proximity to downtown L.A. have made South Pasadena a prime draw for generations. The city is known for its tree-lined streets, majestic homes and high real estate prices. A light rail line offers a mass transit alternative.
6. Westmont
- Median home value: $653,800
- Median income: $50,509
- Home value to income ratio: 12.94
- Population: 34123
This unincorporated neighborhood in South Los Angeles is its own census designation, not a city, and it might seem out of place on this list, with the lowest median home price. But like surrounding neighborhoods in L.A., it has seen housing prices explode in recent years, out of reach for many longtime residents.
5. Berkeley
- Median home value: $1,413,900
- Median income: $108,092
- Home value to income ratio: 13.08
- Population: 120,257
To a certain type of Californian, living in Berkeley is the ideal. But the college town has come a long way in terms of real estate from the free speech and hippy days. With so many students living in town, the median income is lower than some other cities on the list.
4. Laguna Beach
- Median home value: $2,000,001
- Median income: $143,843
- Home value to income ratio: 13.90
- Population: 28,532
The artsy, charming Orange County beach town has long been a prime housing hot spot. But getting in has never been tougher with the median price now topping $2 million.
3. Santa Barbara
- Median home value: $1,570,800
- Median income: $106,182
- Home value to income ratio: 14.79
- Population: 87,779
Housing prices are lower here than some other iconic beach towns. But Santa Barbara is a rough commute into L.A., and median income is lower than some ritzy coastal communities in L.A. and Orange counties.
2. Beverly Hills
- Median home value: $2,000,001
- Median income: $132,977
- Home value to income ratio: 15.04
- Population: 31624
Not a surprising addition to the list. Yes, the home of Rodeo Drive is home to a lot of wealthy people, but home prices are through the roof. It’s worth noting tony neighboring communities like Bel-Air and Brentwood are not on the list because they are part of the city of Los Angeles.
1. Santa Monica
- Median home value: $1,755,500
- Median income: $114,885
- Home value to income ratio: 15.28
- Population: 91,169
Santa Monica has long been a coveted address. Why does it top the list? While its median home value are lower than some tonier communities, its median income is also lower, likely because the city is home to a lot of apartments, with some residents still enjoying rent-controlled prices.
What about the Bay?
Almost all of the top ratios between cost and income were found in Southern California, despite skyrocketing home prices in Silicon Valley.
Why? In some cases, home values are higher in the most elite Bay communities due to the tech industry. But our analysis also takes into account income levels.
“Incomes are just incredibly high in the Bay Area,” Green said, referencing the tech boom.
Long-time owner rule the roost
Many people bought houses in Southern California’s luxury enclaves 40 years ago when they were much cheaper and have stayed, according to Green.
“California has, I think, the slowest mobility of any state in the country,” he said. “The relevant income isn’t what they make now, but what they made 20 or 30 years ago.”
“They’re looking at this ocean and they’re enjoying it, and their income may be pretty low but they can afford it,” especially with Proposition 13 keeping their property taxes low, Green said.
The post These are California’s most affordable and least affordable cities. Both lists induce sticker shock appeared first on Los Angeles Times.
