California Housing Market Vitality

Market Rank

forty four

California metro area house prices are forecasted to track 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 strengthened. Current local economic conditions support an estimated 6.1% 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 fourth 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 316
Bakersfield, CA Outperforming Positive 103
Chico, CA Underperforming Neutral 236
El Centro, CA Tracking Negative 286
Fresno, CA Outperforming Positive 116
Hanford-Corcoran, CA Outperforming Positive 55
Los Angeles-Long Beach-Glendale, CA Underperforming Positive 221
Madera, CA Outperforming Positive 79
Merced, CA Underperforming Negative 284
Modesto, CA Outperforming Positive 73
Napa, CA Underperforming Negative 366
Oakland-Hayward-Berkeley, CA Underperforming Negative 383
Oxnard-Thousand Oaks-Ventura, CA Underperforming Neutral 296
Redding, CA Outperforming Positive 101
Riverside-San Bernardino-Ontario, CA Tracking Positive 141
Sacramento–Roseville–Arden-Arcade, CA Tracking Positive 104
Salinas, CA Underperforming Negative 297
San Diego-Carlsbad, CA Underperforming Positive 168
San Francisco-Redwood City-South San Francisco, CA Underperforming Negative 402
San Jose-Sunnyvale-Santa Clara, CA Underperforming Negative 395
San Luis Obispo-Paso Robles-Arroyo Grande, CA Underperforming Negative 355
San Rafael, CA Underperforming Negative 400
Santa Cruz-Watsonville, CA Underperforming Negative 401
Santa Maria-Santa Barbara, CA Underperforming Negative 351
Santa Rosa, CA Underperforming Negative 391
Stockton-Lodi, CA Underperforming Positive 201
Vallejo-Fairfield, CA Underperforming Negative 325
Visalia-Porterville, CA Outperforming Negative 186
Yuba City, CA Outperforming Positive 61

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 February 2021