For those considering purchasing a home in California, there are several cities where home affordability has reached alarming levels. Rising interest rates, inflation, and a highly competitive market have made it more challenging for homebuyers to secure affordable mortgage payments. Here are the five worst cities in California to buy a home right now, according to Reventure Consulting:1. San Diego
Homebuyers in San Diego are facing some of the toughest conditions, with 64% of their income going toward mortgage payments. This level of unaffordability hasn’t been seen since the 2006 housing bubble. The high cost of living combined with rising mortgage rates makes homeownership in San Diego incredibly difficult for many.
2. San Francisco
While home prices in San Francisco have dropped 15% over the last two years, it’s still one of the least affordable cities for homebuyers. To afford a home, buyers must still spend 64% of their income on mortgage payments, making the dream of homeownership elusive for many in this tech hub.
3. San Jose/Santa Clara
In the San Jose/Santa Clara area, the situation is even worse, with buyers needing to allocate 72% of their median income toward housing costs. With such high costs, it’s not uncommon for buyers to need three or four co-signers to qualify for a mortgage, underscoring how out of reach homeownership has become in Silicon Valley.
4. Los Angeles
In Los Angeles, homebuyers are struggling to make the numbers work. With a median income of $88,000, buyers are still spending over $5,000 a month on mortgage payments. As a result, many are finding it nearly impossible to enter the housing market.
5. Orange County
Finally, Orange County rounds out the list of worst places to buy a home in California. Buyers here are spending 72% of their income on mortgage payments, according to data from Reventure App. This high percentage makes it one of the least affordable places to purchase a home in the state.
Homebuyers in these cities are feeling the strain of soaring mortgage costs, with many facing financial hurdles as they try to enter the market. California’s housing affordability crisis continues to challenge potential buyers, leaving many wondering if homeownership is still achievable in these iconic cities.