The dream of home ownership is one shared by many, but expensive home prices can make that dream seem out of reach.
While prospective buyers in California may have trouble landing their forever homes in big metropolitan cities due to expensive home prices, not all hope is lost. A new study from Go Banking Rates revealed which cities can be an affordable alternative to pricey neighborhoods.
Four neighborhoods in the Golden State were named in the report.
To determine which locations had affordable home prices, researchers analyzed data from Zillow that mapped out median home list price changes from 2022 to 2023 and year-over-year changes in median household income from 2020 to 2021.
Home prices in these neighborhoods have declined, according to the study.
Riverside: Home price change: -1.36%
San Diego: Home price change: -3.57%
Los Angeles: Home price change: -3.50%
Sacramento: Home price change: -5.81%
While the price decline may not seem significant, the decrease in price mimics the current trends of the broader real estate market.
A new report from Realtor.com indicates home prices across the county are expected to decrease but not as much as prospective home buyers would like.
“Most likely, we’ll see a little bit of decline followed by some months of subpar growth,” Danielle Hale, Realtor.com Chief Economist, said in a statement. “I don’t anticipate double-digit price declines. I expect prices to mostly move sideways over the next year or so.”
Other experts have shared similar predictions.
Even though some home prices have dropped, home prices in the Golden State are still high overall.
The full Go Banking Rates study can be viewed here.