I still remember a client who was surprised when looking at the price list just before making an offer on a Pasadena property.

The median sale price in Pasadena for 2026 is expected to remain quite high according to the data.

According to Redfin, it is around $1.2 million to $1.3 million, while Zillow's average home value indicator shows about $1.08 million to $1.17 million.

It is clear from any data that this is a market that significantly exceeds $1 million.

Using the median value of about $1.25 million, let's calculate using standard loan conditions (30-year fixed, 20% down payment, 6.75% interest rate).

Excluding the 20% down payment of $250,000, the loan principal becomes $1 million. If repaid at a fixed rate of 6.75% over 30 years, the estimated monthly principal and interest payment would be about $6,486. Adding property tax (about $1,302 per month) and insurance (about $150 per month), the total monthly housing cost would be approximately $7,938.

Have you ever wondered how much you need to earn to afford this amount?

Using the DTI 28% rule, the required monthly income is calculated to be about $28,350, which translates to an annual income of about $340,000.

However, the median household income in Pasadena is around $105,192, indicating a gap of more than three times between the required income and the actual median income.

This gap is also pronounced when compared to other cities in Southern California.

Even within Los Angeles County, Pasadena ranks among the highest compared to cities like Los Angeles (required annual income of about $265,000) or Rowland Heights (required annual income of about $273,000). This is interpreted as a result of the excellent school district and historical residential premium.

It's understandable that entering Pasadena may feel burdensome for Korean families.

Even for dual-income households, reaching a combined annual income of $340,000 is not an easy feat. In such cases, I would recommend significantly increasing the down payment to 30-40% or considering nearby areas like Altadena or Eagle Rock, which have similar school districts but slightly lower price ranges.

By increasing the down payment to 35%, the loan principal would decrease to about $812,500, significantly lowering the monthly payment and income threshold.

Additionally, looking into condos or townhomes can often reduce the entry cost compared to single-family homes.

Having observed this market for a long time, I believe Pasadena is a region that Korean families who prioritize school districts and community values have consistently preferred. Therefore, rather than taking on excessive loans, it seems more comfortable to approach this with a well-planned financial strategy.