Los Angeles ranked worst metro area for first-time homebuyers: study
LOS ANGELES - Looking to buy your first home? Don't go to Los Angeles.
A new study just ranked the City of Angels the worst metropolitan area in the United States for first-time homebuyers.
That's according to Bankrate's study released Monday that ranked the 50 largest metro areas in the country based on several factors including affordability, employment, safety, the housing market, wellness, and culture. Those are all factors Bankrate says first-time homebuyers should consider in the process.
The study noted that Los Angeles households headed by 25- to 44-year-olds have a median income of $80,643, according to the U.S. Census Bureau.
By comparison, that dollar figure is just a bit more than the median income in Pittsburgh, Pennsylvania, which ranked as the best metro area in the country for first-time homebuyers. Bankrate said this is due to its affordability, large housing supply, and safety.
The median home price in the Pittsburgh area in the first quarter of 2022 was just $169,000, according to ATTOM Data Solutions. That was the lowest among the 50 largest metro areas — and a fraction of the median prices of $1.4 million in Silicon Valley, $1.1 million in San Francisco and $860,000 in Los Angeles.
Overall, California's metro areas didn't rank particularly well in this study. Five of the 10 worst metro areas for first-time homebuyers were in the Golden State. They included Riverside (#47), San Jose (#46), San Francisco (#43), and San Diego (#41).
On the other end of the spectrum, the top five metro areas for first-time homebuyers were Pittsburgh, PA; Minneapolis, MN; Cincinnati, OH; Kansas City, MO; and Buffalo, NY.
A recent analysis conducted by SmartAsset reviewed the nation’s 25 largest cities to determine the number of hours a renter would need to work to cover housing costs. The methodology was based on three factors - average annual take-home pay, average hours worked per year, and median monthly rent.
Four California cities made the list, with San Jose taking the top spot. Workers there need to work the most to pay rent, with 77 hours needed to pay a median monthly rent of $2,232.
Los Angeles came in second. Workers here need to work 72.3 hours to pay for rent each month.