(Just The News)—The monthly payment to purchase an entry-level California home has risen 88% since 2020, according to a new report from the non-partisan, state-funded Legislative Analyst’s Office. With the ongoing wildfires having destroyed over 10,000 buildings in high-income areas, prices are primed to go up even further as wealthy families seek new shelter.
“Payments for a mid-tier home were nearly $5,800 a month in December 2024 – an 84% increase since January 2020. Payments for a bottom-tier home were over $3,500 per month – an 88% increase since January 2020,” wrote the LAO. “This rapid increase in monthly costs for homebuyers was driven by higher home prices and increasing mortgage rates.”
The LAO also notes that home prices dropped briefly early in the pandemic during 2020; rising prices spurred by low interest rates drive home payments to rise even as rates remained steady, with rate increases starting in 2022 making financing those higher purchase prices even more expensive.
The LAO says that this rapid increase in mortgage rates from 3% before 2022 to 7% now means that many homeowners can’t afford to move, even if they wanted to, thus putting further pressure on housing prices as fewer homeowners decide to sell.
“For example, if a homeowner with a mortgage rate of 5 percent sold their home and bought a new similarly-priced home at current interest rates, they would have monthly payments approximately 18 percent higher. For the typical homeowners, this amounts to over $300,000 more in payments over the life of a 30-year loan. As a result, many are choosing to stay put, significantly limiting the number of homes available for sale in the state’s tight housing market,” the LAO wrote.
“81 percent of California homeowners currently have mortgage rates below 5 percent, while new buyers face the much higher 7 percent rate,” the LAO wrote. “If a homeowner with a mortgage rate of 5 percent sold their home and bought a new similarly-priced home at current interest rates, they would have monthly payments approximately 18 percent higher. For the typical homeowners, this amounts to over $300,000 more in payments over the life of a 30-year loan.”
“As a result, many are choosing to stay put, significantly limiting the number of homes available for sale in the state’s tight housing market,” continued the LAO.
With over 12,000 buildings now destroyed by the ongoing fires – concentrated in wealthier areas such as the Pacific Palisades where the median home for sale before the fire cost $4.6 million – prices are already spiking as high-income families try to get temporary housing while their homes are rebuilt, or move somewhere new entirely.
The City of Los Angeles permitted just 8,706 new homes in 2024, down from 11,311 in 2023, and 15,295 in 2022, meaning the wildfires could decrease the city’s overall housing supply as building slows.
Hilgard Analytics’s 2024 report on residential permitting in Los Angeles blamed high interest rates and the city’s new transfer tax on all property over $5 million for the recent decline.
“Persistently high interest rates, coupled with negative externalities from Measure ULA, discouraged developers from taking on the financial risks of new projects,” wrote urban planner Joshua Baum in the report.
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Safeguarding Your American Dream: Discover the Power of America First Healthcare
In today’s economy, healthcare costs remain one of the biggest threats to financial stability and family security. Americans work hard to build a better life, yet rising medical expenses can quickly erode savings, force tough trade-offs, and even push families toward debt or bankruptcy. Medical bills continue to rank as the leading cause of personal bankruptcy in the United States, with millions facing underinsurance or unexpected out-of-pocket burdens that no one plans for. Many turn to government-run marketplace plans under the Affordable Care Act, hoping for relief, only to discover that what appears affordable on paper often delivers higher long-term costs, limited real protection, and coverage that may not align with personal values or family needs.
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The allure of marketplace plans is easy to understand: open enrollment periods, premium tax credits for many households, and the promise of “comprehensive” benefits mandated by law. Yet recent data reveals a different reality, especially after the expiration of enhanced premium subsidies at the end of 2025. Enrollment for 2026 dropped by more than one million people compared to the prior year, with many shifting to lower-tier bronze plans to keep monthly premiums manageable.
These plans feature significantly higher deductibles—averaging around $7,500 nationally—and greater cost-sharing requirements. Families who once paid modest amounts after subsidies now face average premium increases of $65 or more per month, even as they accept plans that leave them responsible for thousands in upfront costs before meaningful coverage kicks in.
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Values alignment represents another growing concern. Government-influenced plans operate within a framework shaped by federal mandates and political priorities that may not reflect conservative principles of limited government, personal freedom, and ethical stewardship. Families who want to direct their healthcare dollars toward providers and benefits that honor traditional values sometimes find marketplace options feel misaligned, forcing a compromise between affordability and conviction.
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In an era when healthcare inflation continues to outpace general cost-of-living increases, relying solely on marketplace solutions carries growing risk. Families who proactively explore private alternatives frequently achieve meaningful savings while gaining peace of mind that their coverage truly works when needed most.
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Ultimately, protecting your family’s future requires looking beyond the marketing of “affordable” government options. By understanding the long-term costs hidden in high deductibles, shifting coverage tiers, and values mismatches, Americans can make empowered choices. Private, values-driven insurance offers a smarter path—one that rewards diligence, supports wellness, and delivers real security. For those ready to move beyond the limitations of traditional marketplace plans, a simple review can reveal options designed to serve families, not bureaucracies. The American Dream thrives when individuals and families retain control over their healthcare decisions, and thoughtful private coverage plays a vital role in making that possible.