You’d figure renters in the Los Angeles/Orange County area would have a tougher time than in many other places scrapping together a down payment for a home.
A new Zillow analysis shows how high that hurdle is: The Los Angeles/Orange County region came in third in the nation where coming up with a down payment was cited as the No. 1 barrier to home ownership.
San Jose and San Diego came in first and second, respectively.
Saving enough money for a down payment was a problem for more than two-thirds of renters Zillow surveyed across the U.S. It was cited more than any other issues, including job security or qualifying for a mortgage.
In San Jose, 73.9 percent of renters surveyed said the down payment was the biggest barrier; that compares with 72.9 percent in San Diego and 72.2 percent in Orange County.
Being able to afford a down payment was the top obstacle for 67.9 percent of those polled across the U.S.
A 20-percent downpayment on a U.S. home at the $195,700 median price eats up more than two-thirds of the national median annual household income of $57,667, according to the analysis.
In expensive markets, Zillow says, it can cost more than 180 percent of the average annual income.
In San Jose, where the median income is $105,455, a down payment on the median home – $961,600 – is $192,320.
In the L.A./O.C. area, Zillow places the median home value at $590,000, with a median 20 percent down payment of $118,000.
The median income is $64,806. That puts the down payment at 182 percent of income.
These were the percentage of renters around the U.S. citing barriers:
Affording the down payment: 67.9%
Qualifying for a mortgage: 53.2%
Debt: 50%
Job security: 38.5%
Not in a position to settle down: 20.1%
Not enough homes for sale: 11.2%
Other: 4.1%
None: 6.9%