A new analysis by the Public Policy Institute of California reveals that Californians typically become homeowners at age 47, significantly later than the national average of 36.
This delay is attributed to high home prices, rising mortgage rates, and slow construction of new homes, particularly in Southern California.
Chris Duff, president of the Greater Los Angeles Association of Realtors, described the trend as “staggering,” noting that the age of first-time homebuyers has been increasing yearly. The study highlights the challenges faced by younger adults, who often have to rely on parental support or move in with friends to afford a home.
The shift in homeownership age has broader implications. According to Marisol Cuellar Mejia of the Public Policy Institute, this trend affects wealth accumulation and retirement security, as homeownership remains a primary means of building wealth. The delay in buying homes could lead to Californians working longer and having fewer children.
In response to the housing crisis, California voters will consider Proposition 37 in the upcoming November election. The proposition aims to create a down payment assistance program for middle-class homebuyers, funded by up to $25 billion in revenue bonds. However, some, like Republican Assemblymember Carl DeMaio, oppose the measure, arguing it could burden taxpayers.
The disparity in homeownership is also evident across different demographics. White and Asian Californians tend to buy homes earlier than Black and Latino residents, reflecting broader racial and economic inequalities. Education also plays a role, with college graduates achieving homeownership earlier than those without a degree.
The findings underscore the need for policy interventions to address housing affordability and expand access to homeownership, ensuring that future generations have the opportunity to build wealth through property ownership.
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