Santa Monica Ranks Among Worst Cities For First-Time Homebuyers

SANTA MONICA, CA — So how likely are first-time homebuyers to buy their first house in Santa Monica? Well, it's not super likely, according to a new report from WalletHub.

Santa Monica is among cities ranked with the least affordable housing, where that big milestone just might be tougher to achieve compared to other cities in the U.S., WalletHub reports.

Santa Monica is the fourth-worst affordable place for first-time home buyers, ranking just below Los Angeles.

But that's not the only California city where the real estate market might not favor a buyer on a budget. The overall least affordable cities for first-time buyers in the U.S. were Berkeley, followed by Oakland, San Francisco and Santa Monica. Los Angeles ranked fifth-worst affordable for people looking to settle down for the first time as a homeowner.

The study compared 300 cities of different sizes across the U.S. and evaluated 22 indicators, including market attractiveness, affordability and quality of life. Data from these cities range from the cost of living to real-estate taxes to property-crime rate.

So, what are the most favorable housing markets?

First-time buyers might want to consider looking to Arizona or Virginia. Here are some of the most affordable places for new homeowners:

1. Chesapeake, VA
2. Gilbert, AZ
3. Lincoln, NE
4. Cape Coral, FL
5. Boise, ID
6. Hampton, VA
7. Peoria, AZ
8. Virginia Beach, VA
9. Norfolk, VA
10. Surprise, AZ

In 2020, first-time, single-family home buyers made up about 40% of the market in the U.S. And, 14% more people became first-time buyers in 2020.

A variety of factors could influence people's decisions to buy, but one notable reason could be due to interest rates decreasing in the pandemic.

See the WalletHub report.

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