The 15 toughest states for first-time homebuyers
Sean Pavone/Shutterstock
In many states, a lack of inventory and rising home prices are making it harder than ever for the under 35 set to buy their first place.
New data from Bankrate explores how first-time homebuyers fare in all 50 US states, considering five factors:
- Housing affordability: Percentage of median household income for required for 25- to 44-year-olds to cover mortgage payments (using the median sale price)
- Entry-level job market: Five-year average unemployment rate for 25- to 34-year-olds
- Market tightness: Growth in housing stock from 2010 to 2015 and the percentage of homes for sale
- Credit availability: Percentage of home loans rejected by credit lenders
- Millennial homeownership rate: Percentage of homeowners under 35
Bankrate weighted each category equally to determine its ranking. California, New York, and Hawaii stood out as the toughest states for new homebuyers, while Midwestern locales, such as Iowa and Minnesota, proved the easiest.
Read on to check out the 15 states where it's toughest to enter the housing market for the first time.
The metrics included below were all used to calculate Bankrate's ranking, with the exception of median home value, which was sourced independently from Zillow.
- I got a $40K raise using this 30-second strategy. It made me realize loud work, not hard work, always wins.
- Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo
- Prince Harry and Meghan found out about Kate Middleton's cancer diagnosis on TV like everyone else, report says
- Kia India looks to expand sales, service network to 700 touchpoints by year-end
- Shapoorji Pallonji’s Afcons Infra files DRHP for ₹7,000 crore IPO
- Water crisis affects businesses across Bengaluru; Is there room for cautious optimism?
- BenQ Zowie EC2-CW review – Premium wireless mouse for gamers
- Banks' GNPAs set to improve further to 2.1 pc by FY25: Care Ratings