Firsttime Homebuyer Avoid These States

Firsttime Homebuyer Avoid These States

It's not easy being a first-time homebuyer these days.

Around the country, home prices have been rising, inventory is limited, and banks have tightened lending standards.

But California is the toughest state of all for first-time homebuyers, according to a new report from Bankrate.com.


Buyers in the Golden State face low affordability, tight inventory and high unemployment among workers ages 25-34.

"Millennials have been squeezed financially in a number of different ways," said Claes Bell, an analyst at Bankrate.

Rising home prices make it difficult for buyers to save for a down payment, which can put first-timers at a disadvantage when competing against current owners who have built up equity.

"First-time buyers might not have the ability to go up in price to compete, they are saving their first down payment in cash," said Bell.

Related: Why it takes years to save for a down payment

Rounding out the top five worst states for first-time buyers are Hawaii, New York, Louisiana and Mississippi.

The study evaluated the housing markets in all 50 states taking into consideration affordability, inventory levels, lending environment, home ownership among 35-year-olds and the job market.

Housing affordability is particularly tough in Hawaii, where the percentage of owner-occupied housing headed by someone under 35 was just 20% -- the lowest in the nation.

"The young just don't own homes in Hawaii," noted Bell.

Lack of inventory has been plaguing housing markets across the country recently, and is particularly tight in homes at the lower-end of the market -- where many Millennials tend to be looking.

"The inventory of starter homes is really small," said Bell. "Those homes were absorbed by investors during the aftermath of the housing crisis."

Related: Why a lot of people are moving out of California

But not all buyers are facing an uphill battle to put some roots down.

Iowa is the easiest state in the country for first-time buyers, according to the report, thanks to its affordable home prices and strong job market for Millennials.

"Young people are able to buy there," said Bell. "It has a relatively strong job market with relatively low unemployment and strong credit availability."

Millennials looking to buy their first home might also consider settling down in Utah, Minnesota, Kansas and Missouri, which followed Iowa as the easiest states for first-time buyers.

"First-time buyers should cast a wide net when looking," suggested Bell.

"They may want to consider buying a little smaller or farther away from their job than they would have liked. Then, once you build up equity, it can become easier to build up a down payment for a home you like."


Laurie and Harvey Marcus Headshot
Author:
Phone: 954-540-9863
Dated: March 3rd 2017
Views: 180
About Laurie and Harvey: ...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Sep 18 2018 48981 2 - 34 Reasons Why I Love Real Estate
Sep 18 2018 48981 1 -
Sep 17 2018 49313 2 - VERY LITTLE IS NEEDED TO HAVE A
Sep 17 2018 49313 1 - Real estate is my

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Exit Realty Premier Elite
8961 Hypoluxo Road
Lake Worth, FL
561-701-8124


Other Locations