California homes cost far more than inflation would suggest, study finds

Clever Real Estate examined four decades of federal home price data against the Consumer Price Index to assess how housing costs have outstripped inflation. Nationally, median home values have increased 441% since 1984, compared with a 210% rise in inflation, meaning a typical home would cost about $242,309 if it followed price trends. In contrast, one outlet median home price across the United States stands at $423,100.

The study highlights that California markets exhibit the widest dollar gaps, with San Jose homes costing $1,375,000 versus an inflation-adjusted $642,288, a difference of $732,712. San Diego, Los Angeles and San Francisco each show gaps exceeding $400,000, while Riverside and Fresno also lag behind inflation by over $200,000. Since 2011, home prices have tripled in 13 of the 50 largest metros, including Riverside, Fresno and Sacramento, though 27 metros have begun to see price growth slower than inflation in the past year.