SJ worst in nation for young homeowners

Image by Wikimedia Commons

Better learn to love that efficiency kitchen, those noisy neighbors, and the mold in your closet: new data says San Jose is the hardest city in the U.S. for young people to buy their first home. From SFGATE.

The Bay Area’s largest city has earned a concerning distinction: It has the lowest percentage of people under 30 with a mortgage nationwide. According to new LendingTree data, only 0.8% of San Jose residents under 30 years old are mortgage holders, making San Jose among the most challenging markets for young adults looking to buy homes.

New York City and Los Angeles follow closely behind, with just 1.2% and 1.3% of residents under 30 owning homes, respectively. In general, California cities dominate this difficult-to-enter list: Sacramento is fifth (1.6%), San Diego sixth (1.7%) and San Francisco seventh (2%).

Go Deeper:

• Why San Joseans rent but often can’t buy
• Khamis: Why won't cities solve housing crises by buying on the cheap (instead of building extravagantly)?
• Libertarian detangles SJ housing market’s biggest blunders

To determine these figures, LendingTree researchers analyzed anonymous credit report data, looking at the number of under-30 mortgage holders among all mortgage holders in each metropolitan area. While the study doesn’t explore specific causes, California’s exceptionally high housing costs likely play a role.

This isn’t the first time San Jose real estate has made headlines. In August, SFGATE reported that median single-family home prices in the metro area exceeded $2 million — making it the first region in the country to cross that threshold. 

San Francisco condo prices have also dropped significantly but still command an average price of just under $1 million, placing homeownership firmly out of reach for most young adults. Overall, the impact of high housing costs is particularly visible in the city, where nearly two-thirds of all residents are renters

Read the whole thing here.

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