Eight out of 10 millennials who purchased a home in 2023 said they regret the purchase, according to WalletHub.
Those looking for a cozy starter home in Santa Rosa may want to look elsewhere, according to WalletHub—as the financial website just named Wine Country’s biggest town among the worst U.S. cities for first-time home buyers.
Santa Rosa came in 207 out of 300 on the site’s list of “2023’s Best & Worst Cities for First-Time Home Buyers.“
To produce the list, WalletHub compared 300 U.S. cities of varying sizes, using 22 “key indicators of market attractiveness, affordability and quality of life.” The indicators included a variety of factors—from cost of living, real-estate taxes and property-crime rate to energy costs, home-value appreciation and the comparable price to rent housing instead of owning. Last year, first-time buyers made up 26% of U.S. home purchases—down 8% from 2021, a drop the site chalked up partly to “soaring prices.”
Five cities in Florida, including Tampa, Orlando and Palm Bay, topped the list as the best places to make one’s first home purchase. Other Bay Area cities listed include Vacaville (122), Fairfield (169) and Vallejo (241).
Not all of the 22 indicators were given equal weight in tabulating the results of the survey. For instance, housing affordability—which was calculated by measuring the median home price against the median annual household income—was given far more weight than any other factor, which likely played a hand in Santa Rosa’s meager score. Other low-scoring Bay Area cities are also among the least-affordable names on the list, including Sunnyvale (229), Santa Clara (233), San Jose (261), San Francisco (295) and Berkeley (bottoming out the list at 300).
Santa Rosa was the only city in Sonoma, Marin or Napa counties included in the survey.
While the list is far from comprehensive, WalletHub stressed the importance of giving careful consideration to a number of factors when entering the housing market.
“Buyers must balance what they want and need with what they can afford. Often, people begin searching for their dream homes without a realistic idea of market prices, interest rates or even their eligibility to get a mortgage,” wrote WalletHub financial writer Adam McCann in a July 18 announcement of the results. “Where a home is located is just as important as what features it has. If the neighborhood is unpleasant, it can sour the experience of a great home. Potential buyers may want to narrow their search down to an area with a good reputation before getting into housing details.”
To see the full list, visit wallethub.com/edu.
