From observing the Monterey housing market, it is clear that Monterey is one of the markets in California with significant fluctuations.

As of March 2026, the median sale price in Monterey was approximately $875,000, a substantial drop from the previous year, while data from May shows it rising again to about $999,000 (according to Redfin). Zillow's average home value indicator is somewhat higher at around $1.13 million, likely due to differences in sampling and calculation methods.

Using the median value of about $999,000 and applying standard loan conditions (30-year fixed, 20% down payment, 6.75% interest rate), we can calculate the necessary figures. After excluding the 20% down payment of about $200,000, the loan principal would be approximately $799,500. With a 30-year fixed rate at 6.75%, the monthly principal and interest payment would be about $5,186. Adding property taxes (approximately $1,041 per month) and insurance (about $150 per month), the total monthly housing cost would be around $6,377.

Using the DTI 28% rule, the required monthly income would be about $22,774, translating to an annual income of approximately $273,000. In contrast, the median household income in Monterey is about $102,846, while the overall median for Monterey County is around $97,200 (estimated for 2024). This indicates a gap of more than 2.6 times between the required income and the actual median income, making it challenging for households at the local median income level to purchase homes at the median price.

Compared to nearby areas, the average home value in Monterey County is about $796,000, significantly lower than in the city of Monterey. This suggests that moving to other small towns within the county can noticeably lower the income threshold needed. Given the characteristics of Monterey, which is centered around tourism, military bases, and educational institutions, the availability of listings is limited, and price premiums tend to apply.

For Korean households, especially dual-income families, purchasing in Monterey may require a combined annual income of over $250,000 or increasing the down payment ratio to over 30% as a realistic strategy. Increasing the down payment to 30% would reduce the loan principal to about $700,000, significantly easing the income burden.

Additionally, based on experiences through various market cycles, in a small market like Monterey with high volatility, it tends to be more stable to consider the long-term trends of the entire county along with school district and job accessibility rather than reacting to short-term price fluctuations. For Korean families planning to enter the market, it is advisable to expand the search range for listings beyond the city to nearby county areas.

Ultimately, the data indicates that purchasing a home in Monterey requires both income growth and capital accumulation.