T
he cost of buying a "starter home" in Anaheim is higher than any other city in Southern California. According to Redfin data, you would need an annual household income of at least $251,000 to qualify for a 30-year mortgage at current rates. This is more than the median income in most of these cities.

    Anaheim is third on the national list of cities requiring the highest income for starter homes, according to a report by the San Jose Mercury News. California dominated the top spots on this list, with San Jose taking the number one spot, requiring an annual household income of $300,000. San Francisco was second at $285,000, followed closely by Anaheim at $251,000. San Diego came in fourth at $198,000, Oakland fifth at $194,000, and Los Angeles seventh at $184,000.

    Redfin defines "starter homes" as those priced between the 5th and 35th percentile of the housing market. This means homes priced between $184,000 and $546,000 are considered starter homes. The analysis assumes a down payment of 3.5 percent, which is the minimum for an FHA loan, and that 30 percent of your household income will go towards housing costs.

    The annual income needed for a starter home is more than the median income in each of these markets. In Anaheim, where the median income is around $122,000, you would need double that amount to qualify for a starter home.

    Over the past year, the median sales price for single-family homes in Southern California has risen to $808,000, up 2.7 percent from the previous year. This increase is partly due to low inventory, which has hit high-priced markets particularly hard due to the "lock-in effect." This phenomenon has homeowners staying in their properties longer to keep loans they took during the era of low interest rates, which were the norm for over a decade before recent interest rate increases.