Want to buy a house in Sacramento? It’s likely a ‘distant dream’ for Gen Z, study says

There’s no denying that the housing market in California is rough.

In fact, the capital city ranked the seventh least affordable in the country for first-time Generation Z homebuyers, according to a report from Point2, an online real estate marketplace.

The study looked at the possibility of Gen Z ownership in 100 major cities and ranked them based on home-price-to-income-ratio, median sale price difference, inventory, share of homes sold above listing price, days on market, home ownership rates, and the unemployment rate.

Can Gen Z buy homes in Sacramento?

Gen Z comprises about 21% of the U.S. population and is generally defined as those born between 1997 and 2012. Although, Gen Z is part of the working economy and well into adulthood, not many own homes. The study included adults under the age of 25.

The Gen Z home ownership score in Sacramento was a slim 25.73 out of 100 on the Point2 report. In fact, Census data shows that adults ages 25 and younger own less than 17% of homes.

Only 2.8% of homeowners in Sacramento are Gen Z, according to the study.

There are about 16.7 homes per 10,000 residents in Sacramento. Homes that are on sale spend about 19 days on the market, according to the report.

It also points out that 45% of homes are sold over asking price in the capital city, and median prices rose roughly 6.73% from 2022 to 2023.

As of December, the median home sales price in Sacramento County was $535,000, according to the California Association of Realtors.

California cities most difficult for Gen Z homebuyers

A total of seven cities, out of the 10 most difficult in the nation for Gen Z to own a home, are in California.

Below is the full list of which California cities ranked in the top 10 in the report, according to Point2:

  • No.1 Fremont scored 11.63

  • No. 2 San Diego scored 20.95

  • No. 4 San Jose scored 23.95

  • No. 5 Riverside scored 24

  • No. 6 Los Angeles scored 25.53

  • No. 7 Sacramento scored 25.73

  • No. 8 Chula Vista scored 26.73

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