How Much House Can You Afford in California?
Lenders typically use the 28/36 rule: your monthly housing payment should not exceed 28% of gross monthly income, and total debt payments should stay under 36%. With California's median income of $84,000/year ($7,000/month), that means a maximum housing payment of roughly $1,960/month.
At 6.72% over 30 years with a 15% down payment ($117,750), that monthly budget supports a purchase price of approximately $745,750–$785,000. The median home price in California is $785,000, which means housing is significantly more expensive than the national average.