9 California cities rank among worst for first-time homebuyers. See which ones

Buying your first home has never been easy - but in California, it might be harder than almost anywhere else in the country.

A new WalletHub report found that nine of the nation’s 10 worst cities for first-time homebuyers are in California.

“Buying a home for the first time is an exciting and important milestone for many Americans, but achieving that milestone is getting more difficult as prices and interest rates continue to rise,” WalletHub financial writer Adam McCann wrote in a July 14 article.

First-time buyers accounted for just 21% of all home purchases last year. That is well below the historical average of 40%, according to the personal finance website.

To determine the best and worst places for first-time buyers, WalletHub compared 300 cities nationwide on housing affordability, quality of life and cost of living.

“Buying a home for the first time is a very stressful and difficult process, especially when housing prices are through the roof and interest rates have risen sharply in the past few years,” WalletHub analyst Chip Lupo said in the report.

Along with affordable homes, Lupo said, the best cities for first-time buyers also provide lower crime rates, good schools and a lower overall cost of living.

Here’s which California cities ranked among the nation’s 10 worst places for first-time homebuyers:

Why is California so difficult for first-time homebuyers?

California dominated WalletHub’s ranking, claiming nine of the 10 worst cities for first-time homebuyers.

“People willing and able to invest in a house this year must balance what they want and need with what they can afford,” McCann said.

According to the personal finance site, affordability remains one of the biggest obstacles for first-time buyers.

The California Association of Realtors’ latest housing report shows the statewide median home price was $904,640 in June.

While that was a 2.8% drop from May’s “record-breaking price” of $930,260, it’s still 0.4% higher than June 2025.

Meanwhile, mortgage rates continue to stand in the way for many potential homebuyers.

As of Monday, July 20, the average rate for a 30-year fixed mortgage in California was about 6.63%, according to Zillow.

The California Association of Realtors said renewed tensions between Iran and the United States have fueled concerns about higher energy prices and inflation, putting pressure on the housing market.

“Often, people begin searching for their dream home without a realistic idea of market prices, interest rates or even their eligibility for a mortgage,” McCann said.

In addition, the finance writer said, homebuyers need to consider where a home is located.

“If the neighborhood is unpleasant, it can sour the experience of a great home,” McCann said.

Which California city is the worst for first-time homebuyers?

Berkeley was the worst city in the nation for first-time homebuyers, the WalletHub study found, earning an overall score of 27.97 out of 100.

The Bay Area city ranked No. 296 in the United States for affordability, placing at No. 299 for real estate market conditions and No. 281 for quality of life.

It was the lowest-ranked market overall for people looking to buy a home for the first time.

Where are the worst US cities to buy a home?

According to WalletHub, these are the 10 worst cities in the United States for first-time homebuyers in 2026:

1. Berkeley
2. Santa Monica
3. Santa Barbara
4. Oakland
5. Anchorage, Arkansas
6. San Francisco
7. Costa Mesa
8. Los Angeles
9. San Mateo
10. Glendale

Where are the best cities for US homebuyers?

WalletHub said these were the nation’s top 10 best cities first-time homebuyers in 2026:

1. Palm Bay, Florida
2. Surprise, Arizona
3. Gilbert, Arizona
4. Tampa, Florida
5. Yuma, Arizona
6. Peoria, Arizona
7. Boise, Idaho
8. Chandler, Arizona
9. Orlando, Florida
10. Murfreesboro, Tennessee

Where can I find the most affordable home prices in California?

Though California is home to some of the worst cities for first-time homebuyers, there are still houses for as low as $285,000.

According to the California Association of Realtors, the most affordable home prices in the state can primarily be found in Northern California.

Based on the June 2026 Home Sales and Price Report, these 10 counties had median home prices below the statewide median of $904,640:

1. Lassen County - $285,000
2. Lake County - $306,250
3. Glenn County - $347,750
4. Trinity County - $352,480
5. Siskiyou County - $365,000
6. Tehama County - $380,000
7. Shasta County - $385,000
8. Tulare County - $400,000
9. Kings County - $401,500
10. Tuolumne County - $409,000

How did WalletHub come up with its findings?

To identify the best housing markets for first-time homebuyers, WalletHub analyzed 300 U.S. cities based on affordability, real estate market and quality of life.

The personal finance site then assigned the cities a score out of 100.

The rankings are based on data collected as of June 16, from sources including the U.S. Census Bureau and the National Association of Realtors.

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