California Housing Market Vitality

Market Rank

forty six

California metro area house prices are forecasted to underperform the national market over the next twelve months. Currently, the market is underperforming the overall U.S. market. Compared to 12-months ago, California’s housing market has weakened. Current local economic conditions support an estimated 2.7% increase in house prices over the next twelve months. Based on the housing market vitality of the twenty nine metro housing markets which comprise it, California’s housing market ranks forty sixth amongst all states and D.C. The three-month outlook is negative.

Housing Market Vitality

Housing Market Vitality summarizes the impact of economic conditions on house prices. A value of 100 corresponds to conditions supporting current price appreciation; values less than 100 correspond to a dampening effect and values greater than 100 indicate a positive impact on house prices. A housing market vitality value can be interpreted as a growth rate. Hence, a reading of 105.8 can be interpreted as a 5.8% annualized increase in house prices.

California Metro Housing Markets

California is comprised of twenty nine metro housing markets that account for nearly 98% of the state’s population. The Golden State metro housing markets are unique in their demographics and local economies and exhibit trends that are distinct from the national and state narrative. Each metro market presents its own unique opportunity.

Anaheim-Santa Ana-Irvine, CA Underperforming Negative 340
Bakersfield, CA Outperforming Negative 184
Chico, CA Outperforming Negative 267
El Centro, CA Underperforming Negative 283
Fresno, CA Underperforming Negative 244
Hanford-Corcoran, CA Tracking Negative 206
Los Angeles-Long Beach-Glendale, CA Underperforming Positive 250
Madera, CA Tracking Negative 319
Merced, CA Underperforming Negative 305
Modesto, CA Underperforming Negative 259
Napa, CA Underperforming Negative 386
Oakland-Hayward-Berkeley, CA Underperforming Negative 392
Oxnard-Thousand Oaks-Ventura, CA Underperforming Negative 353
Redding, CA Outperforming Negative 257
Riverside-San Bernardino-Ontario, CA Underperforming Negative 290
Sacramento–Roseville–Arden-Arcade, CA Underperforming Neutral 265
Salinas, CA Underperforming Negative 308
San Diego-Carlsbad, CA Underperforming Neutral 288
San Francisco-Redwood City-South San Francisco, CA Underperforming Negative 402
San Jose-Sunnyvale-Santa Clara, CA Underperforming Negative 400
San Luis Obispo-Paso Robles-Arroyo Grande, CA Underperforming Negative 361
San Rafael, CA Underperforming Negative 401
Santa Cruz-Watsonville, CA Underperforming Negative 399
Santa Maria-Santa Barbara, CA Underperforming Negative 334
Santa Rosa, CA Underperforming Negative 389
Stockton-Lodi, CA Underperforming Negative 349
Vallejo-Fairfield, CA Underperforming Negative 384
Visalia-Porterville, CA Outperforming Positive 96
Yuba City, CA Outperforming Positive 83

Industry Specialization

California’s state economy is specialized in Information, Pro Bus svcs, and Leisure Hosp. Mining, Edu Health svcs, and Trade Trans Util industry sectors are less important to the state economy compared to the national economy.

Industry specialization helps explain the differing impact of industry trends on local economies in contrast to industry composition which describes the structure of the economy. A Specialization Index value greater than 100 corresponds to the sector having a greater share of the state economy than it does of the national economy. Sectors with a Specialization Index greater than 120 characterize the local economy.


Compared to the U.S., there is a higher incidence of poverty amongst California residents and they have less purchasing power. There are fewer high school graduates and a smaller proportion of the population is college educated. California’s population is comparatively more diverse than the overall U.S. population.

A Demographics Index value greater than 100 corresponds to the factor being more intense in the state versus the national average. Characteristics of the local population is a longer-term factor that influences the housing market.

Data through November 2020