LOS ANGELES (CBSLA.com) — California’s hot housing market is increasingly shutting out millenials looking for their first home purchase, a new study has found.

The Bankrate.com study found that California — thanks to an unusually tight housing supply and uncommonly high homes prices — is the worst state in the country for first-time homebuyers.

One problem for entry-level homebuyers is that since the recession builders have largely focused on the higher end of the market, pegging their products to the rising fortunes of America’s upper middle class, CBS News reported.

In August, San Jose became the first U.S. city in which the single-family median home price surpassed $1 million.

The Bankrate.com study calculated its rankings based on five metrics — housing affordability, the job market for young adults, housing market tightness, credit availibility and “homeownership among the under-35 crowd.”

The next-worst state for first-time homebuyers was Hawaii, followed by New York. Iowa, Utah and Minnesota were deemed the top three states for first-time homebuyers.

“Millennials now hitting prime years for that first home purchase may have to stick to smaller, interior states to find a hospitable homebuying climate,” the study’s authors said in a statement.

[graphiq id=”7PXqTTSrev3″ title=”Home Equity Ownership in The United States” width=”600″ height=”617″ url=”https://w.graphiq.com/w/7PXqTTSrev3″ link=”http://trends.findthehome.com/l/2828/The-United-States” link_text=”FindTheHome | Graphiq” ]


Leave a Reply

Please log in using one of these methods to post your comment:

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

More From CBS Los Angeles

Weather Team
Goldstein Tipline

Watch & Listen LIVE