The majority of Californians are now waiting until their late 40s to buy their first homes — about a decade later than the average American, according to a new study.
The shocking analysis from the Public Policy Institute of California found that while half of young adults in the rest of the US own their first home by age 37, that number rises to 47 in the Golden State.
In California, renters in their 30s and a most of their 40s outnumber owners — with the age steadily rising over the past 15 years.
Half of Californians used to own their homes by 39, but that age has jumped to 47, following the state’s continued rise in costs for homeownership.
This leaving homeowners with fewer years to build equity before retirement. In many cases, Californians are still paying a mortgage in their 60s and 70s.
Adding to the Golden State’s woes, the 56% homeownership rate overall in California is much lower than in the rest of the country, which has a 66% share. Only New York has a lower rate, at 54%.
White and Asian Californians tend to own their homes much earlier than black and Latino residents, the study found.
US-born Asians reach homeownership at the youngest age, while Black adults and Latino immigrants are the oldest.
Education is also a factor. Californian’s who have their bachelor’s degree own their home earlier than those who don’t.
To help improve this gap, this fall, voters will decide on a proposition that aims to ease down payments for first-time buyers. Expanding the housing supply and providing additional support to those who face major homebuying barriers are also part of ongoing policy conversations.
The Public Policy Institute used recent American Community Survey data to track homeownership rates by age.
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