California’s major cities were named among the hardest places in the world to buy a home, based on a comparison of home prices and local average incomes by financial services company Remitly.
In its analysis, Remitly found that San Jose, Los Angeles, Long Beach, and San Diego ranked among the five worst cities globally for homebuying conditions. The company said these cities showed heavier home-price burdens than places such as New York, Paris, and Singapore.
According to the report, a one-person household in Los Angeles earning the average annual income of $60,656 could afford a home price equal to only 28.2% of the area’s average home price. In San Jose, the gap was wider: a typical earner making $86,605 could cover housing costs equal to just 27.3% of the area’s average home price.
Remitly said its analysis reflected multiple factors, including home prices, mortgage interest rates, and down payment levels. The countries included were selected from large cities in places previously identified in another survey as preferred destinations for relocation…