Californians who have been searching for affordable homes for years are now finding them more expensive than they’ve ever been, a sign that the housing market has become increasingly uncompetitive.
The median price of a single-family home in California is now $2.4m, up $1.6m since April.
The national median is $1,847,000, according to a report released by the California Association of Realtors.
But that’s not the case for all California counties.
The most expensive single-home home in the state, which covers about a third of the state’s population, is currently $2,976,000.
The report found that the median price for a home in a county outside of the Bay Area is now almost $4m.
“We are not just dealing with a housing shortage in California, but a housing affordability crisis in California,” said Mike Toms, president of the California Realtor Association.
“There’s a lot of empty homes out there.
People are buying their first homes in order to buy a home.
People have bought homes and they are just not finding the space to put down roots.”
Toms told Al Jazeera that more than 30,000 people were living in homes that they bought for $600,000 or less in 2016, and the majority of those were families.
“The average house in California has just $200,000 of income,” he said.
“That’s a $1 million home, which means there are only five people in that house, so you can buy a second house for that much money, but there’s no money in that second house.
You’ve got no money to pay off a mortgage, and there’s not a lot in savings.”
Many people in California who want to buy their first home are unable to because of high housing costs, Toms said.
This lack of income has made it difficult for many to find a place to live.
“I think we are seeing a lot more people in their 40s and 50s looking for a place in the Bay area to live, to save for a down payment, to buy houses and to put their kids through college,” Toms added.
The affordability crisis is also impacting the elderly.
According to the Realton report, the median age of a California home is now just over 67 years old, a record low for the state.
“Many seniors in the United States are struggling to make ends meet,” Tams said.
In 2016, the California government announced that it would be making more than $2bn in new funds available to help low-income Californians buy homes.
“This is a real problem in California and we need to fix it,” Tomes said.