According to Realtor.com, it takes more than a decade of saving up to afford a down payment on a California home.
“I 1,000% believe that,” said Janie Riddiough, Morro Bay resident.
Janie Riddiough says it took about five years for her and her family to afford a deposit on their Morro Bay home.
“My in-laws were really helpful in helping us to do it. So we wouldn’t have been able to do it on our own,” said Riddiough.
A recent study using data from the U.S. Census Bureau and the Bureau of Economic Analysis ranked states by how long it takes to save for a 10% down payment on a home. They examined the average state income in relation to home prices. California came in second, after Hawaii, with an average save time of 10 years and 6 months.
“In today’s market, absolutely, I think that’s a fair estimate. Because of the home values and the difficulty it is to save money today,” said Vickie Garagliano, San Simeon resident.
Vickie Garagliano bought her San Simeon home in 2000.
“I would love to move farther south since most of my activities are here, but I can’t afford to buy a home now because, since COVID, things have gotten outrageous,” said Garagliano.
Garagliano mentioned how she was able to put a down payment on her home.
“The reason I was able to buy is because I lost both my parents, and I had a small inheritance, so I used part of my inheritance to put the money down,” Garagliano said.
According to Realtor.com, the median home price in California is $725,800, but it's even higher on the Central Coast.
In San Luis Obispo County, prices have risen dramatically. The county assessor’s 2024 report shows the median single-family home price has jumped 150% since 2011, from $359,750 to $901,111. Within Morro Bay, the median home price is even higher at around $975,000.
Riddiough bought her Morro Bay home in 2017.
“We bought it for $560,000 and now it’s gone up significantly in the $800s,” Riddiough said.
There is another challenge that potential homebuyers in our area face, and that is competing with others who have a lot more money to spend.
According to Senior Economic Research Analyst Hannah Jones at Realtor.com:
“These markets are highly desirable for high earners and second homebuyers, which means that local buyers must compete for housing, which drives prices higher.”
“When we were trying to buy our home, it was really challenging because we would come up against all-cash offers of people who are retired or people who are more resourced,” Riddiough said.
