Its easier for first-time buyers in 36 other states
NEW YORK Feb. 28, 2017 California is the toughest state for first-time homebuyers, according to anew Bankrate.com report, while Hawaii and New York round out the three most difficult states to buy your first home.
Florida is not the best state for first-time buyers, though it's not one of the 10 worst. The state ranks No. 37, with 36 other U.S. states considered more first-time-buyer friendly.
To determine a state's appeal to first-time buyers, Bankrate evaluated all 50 U.S. states based on several factors pertaining to young adults, including home affordability relative to median income, credit availability, unemployment, market tightness and homeownership percentage among under-35 households.
California ranks as the toughest state for first-time homebuyers for several reasons, including low home affordability (No. 49), availability (No. 49) and under-35 homeownership percentage (No. 49), as well as high millennial unemployment (No. 41).
Iowa, on the other hand, is the easiest state due in large part to the most affordable home prices in the country. The Hawkeye State also graded highly for U-35 homeownership (No. 2) and millennial employment (No. 10). Utah, Minnesota, Kansas and Missouri comprise the rest of the five easiest states for first-time homebuyers.
"Tight market conditions and unaffordably high prices really plague what many young Americans feel are the most desirable places to put down roots," says Bankrate.com analyst Claes Bell. "On the other hand, the availability of FHA loans that allow downpayments of as little as 3.5 percent may make it easier to buy a home in more high-priced markets than you think."