American households need to earn $120,796 a year to afford a typical home with a 10% down payment, according to the Consumer Affairs study.<\/p>\n
However, the median household income in 2024 was $81,604.<\/p>\n
\u201cThe income required to afford a home outpaces the median household income by 48%, pushing homeownership increasingly out of reach,\u201d Consumer Affairs contributor Becca Blanco wrote in an April 29 article, noting that the gap has widened dramatically since 2015.<\/p>\n
\u201cAffordability has improved modestly … but it\u2019s still below normal levels,\u201d Nadia Evangelou, principal economist and director of real estate research at the National Association of Realtors<\/a>, told Consumer Affairs.<\/p>\n Here\u2019s which California cites made the list:<\/p>\n When it comes to housing affordability, San Jose was the No. 1 most expensive city in the nation in 2026, according to the new Consumer Reports study.<\/p>\n You\u2019d need to earn an annual income of $501,012 to put 10% down on a typical house in San Jose and keep monthly mortgage payments at or below 28% of your income, the company found.<\/p>\n With a median household income of $164,801 in 2024, San Jose residents make about 33% of what they\u2019d need to buy a home in the Silicon Valley, according to Consumer Affairs.<\/p>\n As of February, the median home sale price in San Jose was about $1.5 million, roughly $1.2 million more than the nationwide median sale price of $362,412, Consumer Affairs said.<\/p>\n If you put 10% down when purchasing a San Jose house at that price, your monthly payment would be $11,690.<\/p>\n As of Wednesday, May 20, the average San Jose home was valued<\/a> at about $1.4 million, according to real estate website Zillow.<\/p>\n According to Consumer Affairs, these metro areas required the highest household incomes to afford a typical home in 2026:<\/p>\n San Jose: $501,012 a yearSan Francisco: $358,090Santa Cruz: $354,973Santa Maria: $305,535Los Angeles: $301, 221San Diego: $293,618San Luis Obispo: $280,591Oxnard: $276,805Salinas: $262,403Honolulu: $255,280<\/p>\n All of the top 10 cities maintained their top 10 rankings from 2025, according to the company.<\/p>\n Santa Rosa just missed the top 10, landing at No. 11 on Consumer Affairs\u2019 list of the cities where residents must earn the most to afford homes.<\/p>\n In Santa Rosa, you\u2019d need to earn $252,357 a year to afford a 10% down payment on a house and keep monthly mortgage payments at or below 28% of your income, according to the economic research company.<\/p>\n You\u2019d need an annual income of $197,555 to afford a home in Sacramento, No. 21 on Consumer Affairs\u2019 list.<\/p>\n Riverside was No. 22 with an annual income requirement of $197,320, and Stockton was No. 27 with a an income requirement of $182,120 a year.<\/p>\n How did Consumer Affairs rank metro areas?<\/p>\n To determine the minimum income needed to afford a typical home in each metro area, Consumer Affairs said it \u201capplied the 28\/36 rule, which recommends spending no more than 28% of gross monthly income on housing.\u201d<\/p>\n The economic research company pulled data from Zillow to examine home sale prices and calculate monthly home payments.<\/p>\n Consumer Affairs looked at data from the U.S. Census Bureau to determine median household incomes.<\/p>\n Loading\u2026<\/p>\n Related Stories from Sacramento Bee<\/p>\n![\"San](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/05\/GettyImages-1347125054.jpg\" "\\"GettyImages-1347125054.jpg\\"")
San Jose is the most expensive metropolitan area for homebuyers, according to a new Consumer Affairs study. The Good Brigade Getty Images Which California city requires the most income to buy a home?<\/p>\n![\"An](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/05\/2231576765-GI.JPG\" "\\"2231576765-GI.JPG\\"")
An \u201cOpen House\u201d sign is posted near a single-family home for sale. Mario Tama Getty Images What are 10 most expensive cities for homebuyers?<\/p>\n Nine of the 10 cities with the highest income requirements for homebuyers are in California, Consumer Affairs says. ToucanStudios Getty Images Did other California cities make the list?<\/p>\n