The state of California is known for its high cost of living and competitive housing market. As a result, those who want to beat out the competition to buy their dream homes need to come prepared with substantial down payments and six-figure salaries to prove they can afford it.
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According to a 2025 Clever Real Estate study, seven California cities out of the nation’s 50 largest cities require homebuyers to earn $100,000 or more to afford a home. But even making $100,000 doesn’t guarantee you’ll be able to buy in all of these cities. Tech hotspots such as San Francisco and San Jose require earnings of at least $415,000.
Do you earn enough to buy a home in these seven California cities?
Fresno
- Median household income: $71,140
- Median home sales price (April 2025): $418,000
- Income needed with 20% down: $112,172
- Income gap to afford median home with 20% down: $41,032
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Sacramento
- Median household income: $94,992
- Median home sales price (April 2025): $590,000
- Income needed with 20% down: $159,312
- Income gap to afford median home with 20% down: $64,320
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Riverside
- Median household income: $87,843
- Median home sales price (April 2025): $596,000
- Income needed with 20% down: $160,783
- Income gap to afford median home with 20% down: $72,940
San Diego
- Median household income: $103,674
- Median home sales price (April 2025): $920,000
- Income needed with 20% down: $246,134
- Income gap to afford median home with 20% down: $142,460
Los Angeles
- Median household income: $91,960
- Median home sales price (April 2025): $905,000
- Income needed with 20% down: $241,149
- Income gap to afford median home with 20% down: $149,189
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San Francisco
- Median household income: $127,792
- Median home sales price (April 2025): $1,550,000
- Income needed with 20% down: $415,871
- Income gap to afford median home with 20% down: $288,079
San Jose
- Median household income: $153,202
- Median home sales price (April 2025): $1,700,000
- Income needed with 20% down: $458,297
- Income gap to afford median home with 20% down: $305,095
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This article originally appeared on GOBankingRates.com: 7 California Cities Where You Need To Earn Six Figures To Afford a Typical Home
