Hard. Really hard. Both compared to how hard it is in other states, and how hard it was for previous generations of Californians to buy homes.
Source: Legislative Analyst’s Office.
While it’s always been more expensive to be a homeowner in California, the gap between us and the rest of the country has grown into a chasm. The median California home is now priced 2.5 times higher than the median national home. As of 2017, the typical California home costs $560,000, easily beating the likes of Massachusetts or New York (only Hawaii had more expensive houses).
Despite relatively low mortgage rates, exploding housing prices have caused California’s homeownership rate to dip significantly. Just over half of California households own their homes—the third lowest rate in the country, and the lowest rate within the state since World War II.
It’s not just housing prices that are affecting homeownership rates. Studies have found that student debt loads, rising income inequality and changing housing preferences among younger Californians are also at play.