California's median home price hit $650,000 in mid-2025, a 45% rise over five years, driven by supply shortages, population growth, and high construction costs. Inventory remains tight with 3.5 months available, while mortgage rates near 7% slow sales. Affordability challenges persist, with many spending over 30% of income on housing. Policies aim to boost affordable housing, but displacement and homelessness rise. Regional disparities continue, with Riverside and Central Valley more affordable than coastal areas.