Bay Area home prices continue to soar, and according to a new study, the average age most Californians can afford to buy a home is soaring as well.
“We’ve been shopping since 2021,” said Ruben Montes. “At that time we were getting outbid by cash offers like crazy.”
The 37-year-old and his fiancé have been trying to buy a home in the Bay Area for the past two years. The registered nurse and his girlfriend both have high-paying jobs but they haven’t been able to find a house they can afford.
Young people are getting priced out of the California housing market and a new study says most folks are pushing 50 by the time they can afford to own one.
“It's been an emotional roller coaster to say the least. We find a house, we fall in love with it, we put an offer in, we get outbid. It’s just an emotional roller coaster. Ups and downs, hoping one day will be able to find something,” said Montes.
According to a study by the UC Berkeley Terner Center for Housing Innovation, California home ownership is increasingly out of reach for many.
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In 2021, less than 45% of Californians were homeowners, and while the majority of residents in their 30s could afford to buy a house in most other states, researchers say most Californians can't afford to buy til age 49.
“It means that by the time you’re able to become a homeowner, you’ve probably missed the boat in terms of enjoying the benefits of home ownership for one’s kids,” said Issi Romem, co-author of the study.
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The housing economist calls the findings jarring. He says unless the state starts building more dense and affordable housing, the state’s demographics could drastically change.
“Overtime, we have a process of sorting whereby only more affluent people can live here. It’s not a coincidence that Californians tend to be richer than elsewhere. Housing prices dictate that,” said Romem.
Realtor Valerie Vicente of Coldwell Banker Realty says young people are having a tougher and tougher time breaking into the housing market. She says even fixer uppers are topping a million dollars.
“It’s really difficult for young, first-time homebuyers that are paying big rents to be able to save enough money for a down payment to afford that first house,” she said. “It’s frustrating because we love to put people in homes. Homeownership is the American dream that’s what people want and they’re young hard-working couples that both people are working and they can’t start.”
Montes and his fiancé have been living with a relative to save as much as possible for a down payment. They put an offer on a $1.1 million property Sunday.
“It's pretty tough out there for us. We had to make a lot of sacrifices to even be in this position,” he said.
Despite the odds, Montes is determined to own a home, hopefully before he’s 49.
