November 3, 2024

Luis Jimenez graduated debt-free from California Baptist University in April 2023 with a bachelor’s in biomedical science. Recently engaged, he lives at home with his parents while pursuing a Doctor of Nursing Practice at West Coast University. Like many working-class citizens, Jimenez dreams of owning a home with his soon-to-be wife.

But now, he doesn’t see that happening anytime soon.

“The way things are going right now,” Jimenez said, “I don’t really know how anyone my age will ever be able to afford a home.”

According to Redfin, a national real estate company, home prices in California rose 3.2% in August 2024 compared to last year. The median sale price of a home in 2024 is $817,200, compared to prices at the start of 2020, which had dipped to a median of less than $550,000. In Riverside, home prices rose 4%, with a median sale price of $635,000.

There is no denying the housing market has surged uncontrollably.

Jason Dsouza, a realtor and CBU alumnus, says this is the worst market he has ever seen.

“Times have changed in affordability,” Dsouza said. “This housing market isn’t like anything we’ve seen before, and we’re seeing fewer people able to afford homes, especially recent college graduates.”

So, will college graduates ever be able to afford a home? Experts say it’s possible, but the stretch to do so could be demanding.

On average, the income a U.S. homebuyer needs to afford a starter home fell 0.4%, marking the first annual decrease since 2020. However, those numbers don’t reflect California. According to Redfin data, metros like Los Angeles and Orange County require an income of over $200,000 to afford a median-priced home. In Riverside, the required income is a little under $120,000.

Jimenez is frustrated. “I’m definitely worried,” he said. “Growing up, you start to realize how expensive everything is, and knowing the [housing] market might get worse is very discouraging. It’s hard with this economy, wages and expenses.”

The housing crisis in America is creating a culture of unashamed Generation Z renters.

For Morgan Jackson, senior liberal arts major, renting is the only way she and her husband can live together independently. Jackson, who works in admissions for a college, and her husband, who works in home construction, have a two-income household.

After being married for a year and establishing a better financial footing, Jackson says renting may be their only option until they can afford a home in a few years.

“It’s kind of a running joke, unfortunately, that most of us probably won’t be able to afford a house for a long time in Southern California, unless we move to a rural area,” Jackson said, laughing. “Realistically, we’re looking at three to five years before buying a home. What’s hard is that we already have a double income.”

Renter demand in California is rising quickly. Redfin data showed renter households grew 1.9% annually, three times faster than homeowner households. Rentership in Riverside reached 31.6%, while in Los Angeles, renters make up around 53% of households. With rising homebuying costs, these rates aren’t expected to slow down.

The presidential candidates have indicated they have plans to help make housing affordable.

Vice President and Democratic nominee Kamala Harris has reiterated her plan to make rent and homeownership more affordable, according to Kamala Harris’ campaign website.

Former President Donald Trump has expressed plans to cut inflation for homebuyers and open more federal land for development, according to Donald Trump’s campaign website.

However, many, like Jimenez, believe neither candidate will be able to ease the crisis.

Despite his concerns, Jimenez remains hopeful. With a career in the medical field, he is optimistic that his future salary will eventually allow him to buy a home.

So, what can graduates do now to afford a home one day?

“Save, save, save!” Dsouza said. “Too many young people don’t live within their means. My advice is to work for two years and save as much as you can.”

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