California’s high-end housing market is one of the most attractive for America’s rich. The market for starter homes for young families looking to put down roots? Not so much. The Los Angeles Times reports:
California ranked as the toughest state in the nation for first-time home buyers, who typically would be in the millennial age bracket of 18 to 34, according to a recent report by Claes Bell, an analyst with Bankrate.com.
There are several reasons the Golden State placed last in the report, including the relatively high cost of housing, the tight market for available entry-level homes and the struggle that millennials face in saving for a down payment. […]
The easiest states for first-time home buyers were Iowa and Utah, Bell found.
California is one of the most unequal states in the country, and its housing market is similarly bifurcated, offering both multimillion dollar houses and rent-controlled apartments, but less and less of a foothold for people in the middle. This is a key reason so many working class families have left the Golden State in the past 25 years.
Homeownership is the backbone of American prosperity, forcing families to accumulate wealth and feel they have a stake in the system. California’s low ranking for young home buyers is not an encouraging sign for a state once thought to be a model for America’s future.