A combination of low affordability and high unemployment among Millennials makes California the toughest state for first-time home buyers.
That was the conclusion of a report released Tuesday by BankRate.com, a consumer financial services company based in New York City.
“We found California, New York, Texas, Colorado, Oregon and Massachusetts — states with large metro areas that are attracting young Millennials — are among the 10 worst states for first-time home buyers,” said BankRate.com.
The best states were mostly in the Midwest and West, with Iowa, Utah and Minnesota ranked as the top three.
The bottom three were California, Hawaii and New York, in that order.
California ranked 49th on home affordability, availability and under-35 home-ownership percentage, and 41st on high Millennial unemployment.
BankRate.com said the news isn’t all bad because mortgage rates are still very low by historical standards, allowing Millennials to afford pricier homes. In addition, first-time buyers have access to Federal Housing Administration loans that allow them to make a down payment of as little as 3.5 percent of the purchase price.
