Homes in San Diego are among the most expensive in the country, but almost a quarter of renters here have sufficient income and credit worthiness to buy.
A new study by the online real estate firm Zillow found that San Diego, San Jose and San Francisco have the largest percentage of renters able to afford a media-priced home.
In San Diego, 23.6 percent of renters can afford a home at the countywide median price. That’s a smaller percentage than San Francisco’s 26.8 percent and San Jose’s whopping 35.6 percent, but well above Houston’s 6.8 percent.
The reason they aren’t buying, according to Zilliow, is that young adults are delaying many of the hallmarks of adulthood that typically lead to home ownership, such as finishing their education and starting families.
“When faced with hurdles of high prices and low inventory, first-time homebuyers are renting longer than ever before even if they are qualified to buy,” said Zillow Chief Economist Dr. Svenja Gudell. “San Jose, San Diego and Seattle are among the most competitive places for buyers, and the going isn’t any easier for renters.”
“This is a conundrum for many young people who move to those cities because of their strong job markets, only to find tight inventory and steep competition standing between them and their dream home,” she added.
Zillow said America’s booming tech markets tend to have exceptionally high proportions of qualified renters.
At the other extreme, Zillow found, are markets that tend to have higher home ownership rates, such as Houston, and metros that were particularly hard hit during the housing bust and foreclosure crisis.
