These Central Valley cities are Gen Z’s best bet for homeownership in California, study says
Generation Z stands “little-to-no” chance of buying a home in California, according to a recent study.
Online real estate marketplace Point2 looked at the places where adults 25 and younger have the best and worst chances of homeownership — based on earnings, employment data and housing markets in 100 of the largest cities across the United States.
Seven of California’s big cities topped the study’s list of the “most difficult” places for Gen Z to own a home, including Sacramento and San Jose.
However, the study said, Gen Z homeownership is a better bet in two Central Valley cities: Stockton and Fresno.
Here’s what makes those cities more attractive to would-be homeowners born between 1997 and 2012.
How affordable is homeownership for Gen Z in Fresno?
The Point2 study scored the cities on a scale of one to 100, looking at how easy it is for Gen Z to own a home based on the home price-to-income ratio, home price change, inventory, homes sold over price, amount of days homes are on the market and Gen Z’s homeownership and unemployment rates.
Fresno scored the highest in California, according to Point2 earning 56.95 out of 100 points.
The city ranked No. 46 out of 100 major cities nationwide where Gen Z stands a chance at homeownership.
Homes in Fresno cost nearly nine times Gen Z’s median income, according to the study.
Housing prices decreased by 2.37% between 2022 and 2023.
There are around 13 homes for sale per 10,000 residents in Fresno, according to the study.
More than 41% of homes in Fresno are sold above the listing price, the study said, and homes in Fresno spend an average of 19 days on the real estate market before they find buyers.
Around 19% of adults 25 and under own homes in Fresno, according to Point2.
More than 14% of the Gen Z population in the city is unemployed.
How easy is it to buy a home in Stockton?
Stockton was the only other California city that earned a score above 50 in the study, earning 52.95 points.
It ranked 56th on the list of 100 U.S. big cities where Gen Z can afford homes.
Homes in Stockton also cost nearly nine times Gen Z’s median income, according to the study, and homes cost 1.15% more in 2023 than they did in 2022.
There are around 15 homes for sale in Stockton per 10,000 residents.
More than 48% of homes are sold above the listing price, according to the study.
Homes in Stockton spend an average of 20 days on the market before they’re sold.
Almost 8% of adults 25 and younger own homes in Stockton, according to the study, and more than 6% of the city’s Gen Z population is unemployed.
How did Point2 study rank homeownership affordability?
Point2 ranked 100 major U.S. cities in terms of homeownership affordability based on seven metrics: home price-to-income ratio, median sales price difference between 2022 to 2023, inventory per 10,000 residents, share of homes sold above listing price, days on market, homeownership rate and unemployment rate.
The agency used data from real estate websites Redfin, Zillow, Realtor and PropertyShark as well as the cities’ local Multiple Listing Service for home buying and home selling information.
The site used the 2022 Census to get data on the median income, unemployment rate and homeownership rate.
.jpg)