The American Dream in Southern California: Is it Still Attainable for Prospective Homebuyers?

The American Dream of owning a home is becoming increasingly out of reach for many prospective buyers in Southern California, according to a recent study by Bankrate. High home prices, stagnant wages, and limited inventory are making it difficult for first-time homebuyers to enter the market.

Prospective homebuyer Jackie Merry expressed her concerns, stating, “Actually falling in love with someplace and not being able to actually get it.” The study from Bankrate ranked Southern California as one of the worst places for first-time homebuyers due to soaring home prices and the need for larger down payments.

Despite these challenges, mortgage banker Larry Davis of Prime Lending remains optimistic, stating that there are still options available for buyers. California recently launched a program called “Dream For All,” where the state will pay 20% of the down payment in exchange for 20% equity in the home.

Davis emphasized that this program will open doors for potential buyers, especially first-time homebuyers, with income limits up to $180,000 in L.A. County and $235,000 in Orange County. Additionally, the California Housing Finance Agency offers assistance with down payments, providing up to 3.5% of the total amount.

Experts recommend that prospective homebuyers speak with a lender, get pre-approved for a loan, and determine their budget before entering the competitive housing market in Southern California. Despite the challenges, the dream of homeownership is still attainable with the right resources and assistance.