Housing Affordability Declines Again, But San Bernardino County Remains Most Affordable Market in Region
An adequate supply of affordable housing promotes homeownership, which increases stability for families and communities, and is an important source of wealth creation. San Bernardino County’s lower relative housing prices in the region can attract first-time buyers seeking a more manageable housing budget and greater long-term financial security. This indicator uses the California Association of Realtors First-Time Buyer Housing Affordability Index to measure the percentage of households that can afford the existing single-family detached home at the entry-level price of 85% of median in San Bernardino County. This indicator also compares the minimum qualifying income for an entry-level home to the annual incomes of common or growing occupations. Homeownership rates are also shown.
TREND
The minimum qualifying income needed to purchase a median-priced, entry-level single-family home in San Bernardino County (estimated to be $389,583) was $68,700 in the first quarter of 2022. This is a 64% increase from the first quarter of 2020, when the minimum qualifying income was $42,000.
As of the first quarter of 2022, approximately 59% of San Bernardino County households could afford an entry-level single-family home. This is the lowest affordability rate measured in a decade. This rate declined from 62% measured in the first quarter of 2021 and 69% measured in the first quarter of 2020.
SAN BERNARDINO REMAINS THE MOST AFFORDABLE COUNTY IN SOUTHERN CALIFORNIA
Percentage of Households Able to Afford Entry-Level Single-Family Home in San Bernardino County, Neighboring Counties, and California, 2013-2022
Looking at the average salaries in common or growing occupations, home health aides, retail salespersons, transportation and material moving occupations and construction and extraction occupations would not qualify for an entry-level home in the first quarter of 2022. Average salaries for elementary school teachers and registered nurses were sufficient to qualify for an entry-level home assuming a minimum qualifying income of $68,700.
AVERAGE SALARIES FOR FOUR OF SIX GROWTH OCCUPATIONS FALL BELOW MINIMUM REQUIRED INCOME FOR AN ENTRY-LEVEL HOME
Average Salaries for Growth Occupations and Minimum Qualifying Income to Afford Home Priced at 85% of Median in San Bernardino County, 2022
Between 2020 and 2021, the homeownership rate increased by one percentage point at the state and national levels, while increasing by two percentage points – from 60% to 62% – in San Bernardino County.
HOMEOWNERSHIP IN SAN BERNARDINO COUNTY INCREASES IN 2021
Percentage of Households Owning Their Own Home in San Bernardino County, California, and the United States, 2012-2021
GEOGRAPHIC DETAIL
San Bernardino County remained the most housing-affordable county in Southern California as of the first quarter of 2022. At 59%, a greater proportion of San Bernardino County households can afford an entry-level home than California households overall (43%). Orange County had the lowest affordability rate for entry-level single-family home purchases (29%), followed by San Diego and Los Angeles counties (both 39%), and Riverside County (49%).
RACE/ETHNICITY DETAIL
African American residents are the racial or ethnic group with the lowest homeownership rate (43%), followed by 55% of Native American residents, 57% of Pacific Islander residents, and 58% of Latino residents. Asian residents have the highest homeownership rate (72%) followed by White, Non-Hispanic residents (70%). This variation in rates by race/ethnicity contributes to an Equity Gap Score of 1.7, signaling that the rate of the group with the highest homeownership rate (Asian residents) is more than one and a half higher than the rate of the group with the lowest homeownership rate (African American residents).
BLACK RESIDENTS HAVE THE LOWEST HOMEOWNERSHIP RATE
Homeownership Rate by Race/Ethnicity in San Bernardino County, 2021
| Race/Ethnicity | Percent Homeowners |
|---|---|
| Black | 43% |
| Native American | 55% |
| Pacific Islander | 57% |
| Latino | 58% |
| Two+ | 60% |
| Average | 62% |
| White | 70% |
| Asian | 72% |
Source: Analysis of U.S. Census American Community Survey 1-Year Estimate Data, Table S2502