SUGGESTED COVERAGE: Los Angeles is worst metro area for first-time homebuyers, study says
On the other hand, Pittsburgh was ranked best metro area for first-time homebuyers.
LOS ANGELES - Buying a house can be expensive, due in large part to the location of where you're looking to settle down roots permanently.
California recently ranked among the top three states where buying a house will be the most expensive by 2030, according to a new study.
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Data analysts at SmartSurveyfound that houses in the Golden State are predicted to cost 20.4 times more than the average yearly income. This is based on the prices houses are predicted to cost by that time - an average $1,239,503. Californians are predicted to be making an average of $60,712 per year.
Hawaii took the top spot, where residents of the Aloha State will make 23.3 times less than the $1.5 million it will take to buy a house, the study revealed. On average, workers are predicted to make $61,221 a year. This means that houses would cost 23.3 times more than people’s incomes, confirming Hawaii is the state where it will be the most unaffordable to buy a house in the U.S.
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Nevada ranked second. House price tags averaged around $1.042 million, with house prices growing over five times faster than income. The yearly income for Nevada residents was an estimated $48,369, which by 2030 would be 21.6 times lower than the projected prices of houses.
On the other side of the list, houses will be the most affordable in Illinois, Ohio, and Pennsylvania, according to the study. In Illinois, houses are predicted to cost $171,361 and the average income predicted to be $59,929.
"It’s interesting to see what both the house price and the income landscape throughout the country might look like in six years’ time, specifically how it seems that they won’t be growing at the same pace," a spokesperson for the survey said.
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"The fast-growing trend observed over the last ten years in the housing market shows a worrying perspective, as it looks like the already struggling younger generation will be less and less able to afford to buy a house by 2030 and beyond.
The study analyzed Zillow house price data from 2012 to 2022 to calculate the mean year-on-year price growth rate to predict the average house price by 2030. The same was done with Bureau of Labor Statistics income data to find out the house price to income ratio, discovering where people will have a harder time affording a house in 2030.
