California Housing Market Trends

Real-time market data powered by Zillow Research. Last updated: 2026-04-02

California's market has entered a period of recalibration after years of extreme price growth. The San Francisco Bay Area has seen the most significant correction, particularly in tech-heavy communities affected by remote work policies and layoffs. Southern California remains more resilient, with Los Angeles and San Diego holding closer to peak values. The inland markets — Sacramento, the Central Valley, and the Inland Empire — continue to attract Bay Area and LA relocatees seeking affordability, maintaining relatively strong demand despite higher interest rates.

By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow Research, U.S. Census

Is Now a Good Time to Buy in California?

The California housing market is showing balanced conditions.

home values have been essentially flat (-1.7%) over the past year. there are currently 2,095 homes on the market.

Median Home Value

$765,036

Zillow Home Value Index

Year-over-Year

-1.7%

Home value change

5-Year Change

+24.8%

Since 2021

Median Rent

$2,225/mo

Zillow Observed Rent Index

Active Listings

2,095

Homes for sale

Home Value Trends

5-year Zillow Home Value Index (ZHVI) for California vs. national average. ZHVI reflects the typical home value in the 35th-65th percentile range.

Rent Trends

Average rent in California: $2,225/mo (+2.4% YoY)

Rent vs. Buy Analysis

With a median home value of $765,036 and average rent of $2,225/mo, the price-to-rent ratio in California is 28.7. A ratio above 21 suggests renting may be more cost-effective.

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