Many of you may have been surprised by the much higher-than-expected monthly payments just before placing an offer while looking at properties in Anaheim.

According to the latest estimates from Zillow and Redfin, the median home price in Anaheim has risen to around $920,000. The symbolic proximity to Disneyland and the unique demand for school districts in Orange County make it a region where prices do not easily drop.

You may be thinking it over thoroughly, so let's calculate it step by step. Assuming a 20% down payment, the loan principal would be $736,000, and the monthly principal and interest based on a 6.75% 30-year fixed rate would be approximately $4,774. Applying California's property tax rate of about 1.1%, the monthly property tax is estimated to be $843, and the insurance premium is about $133 per month, bringing the total housing cost to around $5,750 per month.

Applying the DTI 28% rule, the required monthly income would be about $20,537, which translates to an annual income of approximately $246,000. The median household income in Orange County is reported to be around $110,000 according to census.gov, indicating a significant gap that does not even reach half of the required annual income for a median-income household.

Isn't it strange that such a gap exists? Even when looking at actual listings in Anaheim, it's common to see single-family homes with three bedrooms exceeding $900,000, and there are plenty of listings in good school districts that surpass $1 million.

Compared to nearby Buena Park or Fullerton, Anaheim is at a similar or slightly lower level, but when compared to particularly good school districts like Irvine, it is about $600,000 cheaper. This is why Korean households looking for relatively accessible areas within Orange County tend to consider Anaheim as an option.

If it's a dual-income household, each spouse would need to earn around $120,000 per year to reach the necessary threshold, which is more than double the median income in Orange County. Therefore, in reality, many prepare a down payment of over 30% or utilize funds from selling an existing home.

It may be challenging, but if you are planning to buy a home in Anaheim, a long-term perspective based on a 30-year residency, along with considering help from parents or existing assets, seems necessary. Rather than forcing entry, it is advisable to compare with nearby affordable areas.