Over the last few years, we have seen a rapid increase in California housing costs, led by the dramatic increase in the costs of purchasing a home. Monthly costs for a newly purchased home are about $2,500 higher than they were just a few years ago. Annual income needed to qualify for a typical home is over $220,000—roughly 2.5 times higher than median household income (about $85,000). Further, the annual income needed to qualify for a more affordable "bottom-tier" home is 60 percent higher than the median income.
New IRS data show that the state had higher net losses of income tax filers during 2017-2019 than the prior five years.