Four California cities are among the top markets nationwide for homebuyers under the age of 35, according to a new report. San Diego, San Jose, Los Angeles, and San Francisco were highlighted for having a substantial percentage of mortgage holders in this age group, even as the state grapples with high housing costs and a delayed average age for homeownership.
San Diego reported that 84 percent of its mortgage holders are under 35, surpassing San Jose, where the figure stands at 82 percent. Los Angeles follows with 78 percent, and San Francisco with 73 percent. These numbers place California cities prominently on a list that also features other West Coast cities like Seattle (87 percent) and Portland (86 percent).
Nationwide, Charlotte, North Carolina, leads with 90 percent of its mortgage holders under 35, followed by Baltimore (88 percent) and Washington D.C. (86 percent). In contrast, New York City registered 66 percent, and Detroit, Michigan, had the lowest percentage at 45 percent.
Despite these figures, a separate study from the Public Policy Institute of California indicates that Californians tend to delay homeownership significantly longer than the national average. This study found that half of young adults in California wait until age 47 to buy a home, compared to the national average of 37. This trend contributes to renters in their 30s and 40s outnumbering homeowners, a pattern that has been rising for the past 15 years. Consequently, many Californians are paying off mortgages well into retirement, impacting retirement security and wealth-building potential.
The state's overall homeownership rate of 56 percent is lower than the national rate of 66 percent, with only New York having a lower rate at 54 percent. The Public Policy Institute of California study also noted demographic differences in homeownership age, with white and Asian Californians tending to own homes earlier than Black and Latino Californians. College graduates also outpaced those without degrees, and American-born Asian homeowners were the youngest on average, with a majority owning homes by age 39.
For those seeking more affordable real estate options within California, cities like Porterville have been identified as having lower median house prices, with Realtor.com citing a median of $325,000.