Los Angeles the worst metropolitan area for first-time homebuyers, Bankrate study confirms
In news that Angelenos already knew, Los Angeles is the worst metropolitan area in the country for first-time homebuyers, according to a new study.
A new Bankrate study released Monday confirmed that the City of Angels is hell for anyone looking to buy their first home for a number of reasons. The study ranked the 50 largest metro areas in the country based on affordability, employment factors, housing market tightness, safety, and wellness and culture — the all the factors Bankrate.com says first-time homebuyers should consider when purchasing a home.
"While Los Angeles ranked 3rd best for wellness and culture, it ultimately came in as the worst metro-statistical area for first-time homebuyers due to ranking 49th in affordability, 48th in employment factors, 39th in housing market tightness, and 30th in safety," Bankrate said.
The study noted that Los Angeles households headed by 25- to 44-year-olds have a median income of $80,643, according to the Census Bureau — barely more than the median income in Pittsburgh, which the study deemed to be the best metro area for a first-time homebuyer thanks to its affordability, large housing supply, and safety.
"The housing boom of the past two years has widened the affordability gap between low-priced and high-priced metro areas," Bankrate analyst Jeff Ostrowski said in a statement. "But with remote work becoming the norm for white-collar employees, it's possible to keep the fatter paycheck while living in a cheaper area."
The rest of California's metro areas didn't fare much better in the study. Five of the 10 worst metro areas for first-time homebuyers were in the Golden State, including Riverside at No. 47, San Jose at No. 46, San Francisco at No. 43, and San Diego at No. 41. However, these same California metros at least ranked high for culture and wellness, with San Francisco coming at No. 1 in that category.
