A brand new report discovered that California’s housing market is being propped up by wealthy folks buying and selling areas whereas on a regular basis residents are operating to different states for aid.
The state’s housing market continues to be soul-crushingly costly as California median house costs in April climbed to a report excessive of $914,810, in accordance with the newest figures from the California Affiliation of Realtors.
Gross sales of present single-family properties rose 3.9% from March and 4.1% in comparison with April 2025, marking the most important year-over-year improve in seven months. The statewide median value elevated 2.9% from March, crossing the $900,000 mark for the primary time since Could 2025.
The explosive rise in house sale costs was largely pushed by extra exercise in higher-end housing markets, in accordance with the realtors affiliation. Gross sales of properties priced at $2 million or extra jumped 8.4% in comparison with April 2025.
Jordan Levine, the group’s chief economist, cautioned that the bigger share of pricy properties altering arms doesn’t essentially imply the market is on strong floor.
“Housing affordability stays a big problem in California,” Levine mentioned.
California’s sky-high value of dwelling is continuous to push residents out of the state, in accordance with a March report from the California Coverage Lab.
The report discovered Californians who go away the state relocate to neighborhoods the place housing prices are a median of $672 cheaper per thirty days, whereas rents are roughly 30% decrease and median house costs are practically $396,000 inexpensive.
Researchers additionally famous Californians pay about 11% extra for groceries, 40% extra for gasoline and 61% extra for utilities than the nationwide common.
Throughout 2025 alone, practically 150,000 extra folks left California than moved into the state, persevering with a years-long development of home outmigration tied largely to affordability issues, in accordance with the California Coverage Lab.
Matt Ingles, 41, just lately advised The Publish that he was thriving after shifting out of California together with his spouse and two kids to Dripping Springs, Texas.
“My high quality of life right here is considerably higher,” Ingles mentioned. “However that’s extra than simply funds.”
The rising value of dwelling has fueled a gentle migration of Californians to lower-cost states like Texas, in addition to Arizona, Nevada and Tennessee, the place median house costs are sometimes a whole lot of hundreds of {dollars} cheaper.
Because of this, the Golden State misplaced $91.4 billion in web earnings between 2019 and 2023 as folks fled the area, in accordance with IRS information.
In Placer County, the median house value hit $675,000 in April, whereas Sacramento County’s median value stood at $546,420 — ranges that also require six-figure family incomes for a lot of consumers to comfortably afford month-to-month funds at present mortgage charges.
Tamara Suminski, president of the state realtors affiliation, mentioned purchaser demand hasn’t been shaken by increased rates of interest and rising prices for gasoline and different items.
“Whereas elevated mortgage charges and ongoing uncertainty within the Center East proceed to weigh in the marketplace, California consumers and sellers are nonetheless discovering alternatives,” Suminski mentioned in a press release.
The San Francisco Bay Space posted one of many state’s strongest gross sales will increase, with gross sales up 5.5% from a 12 months in the past, at the same time as median costs within the area dipped 1.3%. The county of San Francisco itself noticed median house costs bounce 19.5% year-over-year to greater than $2.1 million.
Southern California house gross sales rose 8% yearly, whereas the Central Valley posted a ten.1% improve. The largest annual gross sales surge was within the Far North area at 24.6%.
The typical 30-year mounted mortgage price was 6.33% in April, down from 6.73% a 12 months earlier, although barely above March ranges.
Regardless of the current beneficial properties, California consumers are nonetheless feeling an affordability crunch as statewide house gross sales remained beneath 300,000 for forty third straight month.
