Gen Z Can’t Afford to Live in Bay Area City
Fremont is one of the most expensive to live in.
(Getty Images)
Fremont, a city in the Bay Area, has been identified as the most challenging location for Gen Z to achieve homeownership, according to KRON4 News. The city received a dismal affordability score of 11.63 out of 100 for prospective Gen Z homebuyers from a study conducted by Point2.
Out of the 102 cities scrutinized in the study, Fremont ranked third-worst in terms of “home price-to-income ratio” with a score of 22.8. It also secured the fourth position in inventory per 10,000 residents (6.4) and landed at the bottom in both “homes sold over price” (70.2%) and Gen Z homeownership rate (1.4%). The median home price in Fremont is a staggering $1.4 million, as reported by Zillow and PropertyShark.
Fremont has been a desirable city to live in for decades. It is close to major Silicon Valley companies such as Google and Facebook, which offer close proximity to jobs and schools.
San Jose, another Bay Area city, found itself in the bottom five, securing the fourth-worst spot with a score of 23.85 in Gen Z homeownership. The average home price in San Jose is approximately $1.3 million, according to Zillow. Remarkably, no California city broke into the top 50 on the list.
Fort Wayne, Indiana, emerged as the most favorable city for homeownership, claiming the top spot with a remarkable Gen Z affordability score of 84.20. The study, which analyzed 102 major U.S. cities based on 2021 census estimates, underscored the significance of factors such as unemployment and ownership rates for those under 25 in influencing homeownership opportunities.
Point2 utilized a scoring system, ranging from 0 to 100, to evaluate the affordability for Gen Z in each city, emphasizing that lower unemployment rates increase the likelihood of securing homeownership financing. The study incorporated data from reputable real estate sources, including Redfin, Zillow, Realtor and PropertyShark.
Noumaan Faiz, (he/him) is a journalist and entertainer from Hayward, CA who covers culture and entertainment.
Edited by Nykeya Woods