The Public Policy Institute of California reports that the median age for first-time homebuyers in California has risen to 47 — about 10 years older than the national median of 37. Renters in their 30s and much of their 40s now outnumber homeowners statewide, and California’s 56% ownership rate trails the national 66%. The analysis highlights racial, nativity and education gaps and notes policy proposals — including a fall ballot measure — aimed at lowering down-payment barriers.
California’s First-Time Buyers Now Average Age 47 — A Decade Behind the Nation
An image collage containing 2 images, Image 1 shows Aerial view of residential streets in Sunnyvale, California, Image 2 shows Close-up of a young couple's hands holding up a new house key
A new analysis from the Public Policy Institute of California (PPIC) finds that half of Californians now purchase their first home at age 47 — roughly 10 years later than the U.S. median of 37. The delay reflects rising costs and a tightening housing market that have pushed homeownership out of reach for many younger adults.
The majority of Californians are now waiting until their late 40s to buy their first homes. Getty Images
Rising Age, Fewer Years to Build Equity
Over the past 15 years the median age for first-time buyers in California has climbed from about 39 to 47. As a result, many Californians have fewer years to build home equity before retirement and are increasingly likely to still be paying a mortgage in their 60s or 70s.
In California, renters in their 30s and a most of their 40s outnumber owners — with the age steadily rising over the past 15 years. Getty Images
Homeownership Rates And Disparities
California’s overall homeownership rate is about 56%, well below the national rate of 66%; only New York reports a lower rate at 54%. The PPIC report also documents persistent racial, nativity and education gaps: White and Asian Californians tend to become homeowners earlier than Black residents and Latino residents. Among groups studied, U.S.-born Asians reach homeownership at the youngest ages, while Black adults and Latino immigrants typically become homeowners the latest.
It's often the case now that many Californians are still paying off their mortgage much later in life. Vlad – stock.adobe.com
Education Matters: Californians with bachelor’s degrees generally buy their first home earlier than those without a college degree.
Policy Responses Under Discussion
Policymakers and housing advocates are weighing several responses. On the ballot this fall is a proposition intended to reduce down-payment barriers for first-time buyers. Other policy proposals focus on expanding housing supply and offering targeted assistance to groups that face the greatest obstacles to homeownership.
Methodology: The PPIC derived its findings from recent U.S. Census American Community Survey data, analyzing homeownership rates by age across demographic groups and regions.
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