The minimum household income needed to purchase a median-priced home at $369,290 in California in May was $84,980, based on a typical 30-year, fixed-rate mortgage at 5.62 percent and assuming a 20 percent down payment. The minimum household income needed to purchase a median-priced home was up from $81,510 in May 2002, when the median price of a home was $319,590 and the prevailing interest rate was 6.82 percent.

At 64 percent, the High Desert was the most affordable region in the state, followed by Sacramento at 42 percent. The Monterey and Northern Wine regions were the least affordable regions in the state at 17 percent.

C.A.R.'s monthly housing affordability index measures the percentage of households that can afford to purchase a median-priced home in California. C.A.R. also reports housing affordability indexes for regions and select counties within the state. The index is the most fundamental measure of housing well-being in the state.