First-time Home-buyers Face Hurdles in California

CALIFORNIA — Nine of the 10 worst cities for first-time home-buyers are located in California, according to WalletHub.

With just 21% of home purchases last year made by first-time buyers, compared to the historical average of 40%, the personal-finance company WalletHub today released its report on the Best & Worst Cities for First-Time Home Buyers in 2026, to identify where people stand to save the most money and enjoy the best living conditions.

WalletHub took the pulse of real estate in 300 cities of varying sizes using 22 key metrics. The data set ranges from housing affordability to the real-estate tax rate to the crime rate.

The Worst Cities for First-Time Home-Buyers are:

291. Glendale, CA
292. San Mateo, CA
293. Los Angeles, CA
294. Costa Mesa, CA
295. San Francisco, CA
296. Anchorage, AK
297. Oakland, CA
298. Santa Barbara, CA
299. Santa Monica, CA
300. Berkeley, CA

Best vs. Worst

  • Flint, Michigan, has the most affordable housing (median house price divided by median annual household income), which is 9.8 times cheaper than in Santa Barbara, California, the city with the least affordable housing.
  • Honolulu has the lowest real-estate tax rate, which is nine times lower than in Paterson, New Jersey, the city with the highest.
  • Flint, Michigan, has the highest rent-to-price ratio, which is 12.5 times higher than in Santa Monica, California, the city with the lowest.
  • Baton Rouge, Louisiana, has the lowest total home-energy cost per month, which is 4.8 times lower than in Honolulu, the city with the highest.

“Buying a home for the first time is a very stressful and difficult process, especially when housing prices are through the roof and interest rates have risen sharply in the past few years,” writes Chip Lupo, WalletHub analyst. “The best cities for first-time home buyers not only are affordable both in terms of buying a house and living there afterward, but they also have a lot of housing choices as well as low crime rates and good schools.”

Palm Bay, Fla., is the best city for first-time home buyers, according to Lupo. It’s among the leading cities in the country when it comes to active home listings per capita and new building permits per capita. Palm Bay has the fourth-highest millennial home-ownership rate and the fourth-highest home appreciation rate in the country. Home-buyers will also benefit from Palm Bay’s low property-crime rate.

To view the full report and your city’s rank, please visit: https://wallethub.com/edu/best-and-worst-cities-for-first-time-home-buyers/5564

 

 

 

 

 

 

 

 

 

 

 

Image Sources

  • New home: Pexels