April 08, 2017 (STLRealEstate.News) If you’re a millennial or someone with a low-income job, then California is probably not a state you want to consider home-ownership in at the moment. Recently, the National Association of Home Builders has illustrated a rather dismal picture for residents of the West Coast who’ve got dreams of owning their own big home in the piece of paradise. According to the study, home-ownership has decreased nationally ever since the first economic downturn around 2008, and has yet to recover to its historical norm, especially in California.
Nationally, the homeowner-ship rate reached a 50-year low in the second quarter of 2016 and has edged up only a tiny bit since then, rising to 63.5% at the end of 2016. But, California in particular paints the scariest picture of all, with only 50% in the majority of the state claiming they own a home. Having mapped out the findings across the country, California is noticeably in trouble with a striking low amount of home-ownership compared to every other section of the country.
To come to this conclusion, the National Association of Home Builders analyzed factors such as age, marital status, income, and home prices, as well their effect on local home-ownership rates. Using the American Community Survey data, the study concludes by finding that the average ownership percentage in the country today is 71.4%. This study helped them come to the dismal conclusion for California, and confirm that no other state is as out-of-touch with home-ownership as Cali is today.
Though San Francisco and Los Angeles are highly sought after cities for millennials wishing to rent apartments and use Airbnb to make it for a year or two, the study also confirms these millennials aren’t choosing to stick around in California and buy a house when it’s all said and done. Instead, they’re moving to affordable states.