Southern California Tops List of Most Unaffordable Housing Markets in U.S.

The Los Angeles and Orange County region has been identified as the most unaffordable major housing market in the United States, according to a recent analysis of Zillow data. California cities and regions accounted for six of the eight least affordable markets nationwide.

The analysis, conducted by Southern California News Group columnist Jonathan Lasner, evaluated 50 major markets based on factors including families sharing homes, the availability of affordable listings, and the proportion of income dedicated to housing costs.

In the Los Angeles-Orange County area, approximately 9% of families were reported to be living in doubled-up arrangements, a rate that ranked fourth highest nationally. Furthermore, only 5% of homes listed for sale in May were considered affordable, defined as housing payments not exceeding 30% of a buyer's income, marking the lowest percentage among all analyzed markets. Renters in the region faced a significant burden, with rent consuming 34% of local income, the third-highest proportion in the country.

San Diego ranked as the second least affordable market, experiencing 9.5% of families doubling up, with only 10% of listings deemed affordable. Renters in San Diego allocated 31% of their income to housing.

The affordability crisis extended beyond Southern California. San Jose was ranked the fourth least affordable market, followed by San Francisco at fifth. The Inland Empire region tied with New York for sixth place, and Sacramento landed in eighth.

Boston, at third, and New York were the only non-California markets among the top eight least affordable regions. Across the six analyzed California metropolitan areas, just 14% of listings met the affordability criteria, compared to a national average of 35%. Nationally, about 6% of families lived in doubled-up situations, compared to 9% in these California markets. Californians spent a median of 29% of their income on housing, slightly above the national median of 27%.

In contrast, St. Louis was identified as the most affordable housing market in the U.S., with 59% of its listings considered affordable and rent consuming only 20% of income.