The affordability crisis is hitting younger buyers in Southern California harder than anywhere else in the country.
Roughly one in 10 adults ages 25 to 34 own homes in the Los Angeles metro area, representing the lowest share among major U.S. metros, the Los Angeles Daily News reported, citing a new study from ApartmentList based on Census Bureau data. The report confirms that soaring home prices, elevated mortgage rates and stubborn inflation are pushing would-be buyers out of ownership and deeper into the rental market.
The Los Angeles-Orange County metro posted a young adult homeownership rate of 10.5 percent, with Los Angeles County even lower at 9.8 percent. Orange County fared slightly better at 13.2 percent. Other California metros weren’t far ahead, with San Francisco and San Jose coming in at 14 percent, San Diego at 15 percent and Riverside at 19 percent. Sacramento, at 23 percent, led the state but still lagged behind many national markets.
Instead of buying, younger adults are increasingly renting longer or living with family and friends, the ApartmentList study found. Median rents across California average $2,759 per month, far above the national median of $1,910, squeezing tenants even as ownership remains out of reach.
The region’s steep down payment hurdle is likely a major barrier to entry for many younger buyers, University of California, Irvine economics professor Edward Coulson told the Daily News.
“It takes a lot to be able to put together a down payment, and that’s increasingly difficult for young people who don’t have a third party able to help,” he said.
That tracks with what brokers are seeing on the ground. Longtime south Orange County broker Candice Blair said most younger buyers she worked with last year relied heavily on family assistance or state-backed first-time buyer programs through the California Housing Finance Agency. Out of nearly 50 deals she closed in 2025, only five involved first-time buyers in the 25-to-34 age range. Of those five, all had help from their families.
“The people who have closed on offers have gotten their deposit with help from family members or at least had it significantly supplemented by family members,” Blair said.
Inventory relief could help ease some of the pressure, though prices remain historically high even after recent declines. Los Angeles County’s median home price slipped 2 percent in February to $882,875, while Orange County’s median also fell 2 percent to nearly $1.2 million.
— Chris Malone Méndez
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