California is one of the 10 worst states for new homebuyers. Which was No. 1?
When it comes to shopping for a home, first-time buyers should be prepared for a lengthy process of searching, negotiating and making big financial decisions.
Living in California doesn’t make that process any easier.
According to a recent study by Premier Timber Frame Builders, a Pennsylvania-based company specializing in designing and constructing, California is among the top 10 worst states for first-time homebuyers.
“Between rising home prices, fluctuating mortgage rates, insurance costs and property taxes, choosing the right state can make the difference between comfortably building equity and constantly stretching your budget,” the construction company said in its February report.
Along with the cost of a home, Premier Timber Frame Builders said, new buyers need to be ready for “the full cost of ownership.”
To help first-time homebuyers navigate the housing market, the company ranked all 50 states based on affordability factors including homeowners insurance and utility bills.
Here’s where California ranked on its 2026 list of the “Best and Worst States for First-Time Homebuyers” in 202
What is the worst US state for new homebuyers?
According to Premier Timber Frame Builders, Hawaii was the worst state in the United States for first-time homebuyers in 2026.
The Aloha State scored 32.02 out of 100, the company said, noting that its “extremely high mortgage costs make entry into the market difficult despite relatively low property taxes.”
While the average annual income in Hawaii is about $61,175, the state’s median home price sits at $720,200, with average mortgage costs reaching roughly $384,492. That creates a steep barrier for many first-time buyers.
On top of mortgage payments, homebuyers in Hawaii should be prepared to spend $1,295 on home insurance, $937 on property taxes and $6,762 on utility bills each year.
Is California a good state for buying a house?
California ranked as the second-worst state for first-time buyers, according to Premier Timber Frame Builders.
With a score of 38.10 out of 100, the Golden State is “weighed down by sky-high home prices exceeding $785,000 and significant mortgage burdens,” the company said.
California’s median home price is $785,900, with average mortgage costs reaching roughly $369,059.
The average annual income is about $77,339.
Homebuyers should be prepared to spend roughly $1,439 on home insurance, $5,347 on property taxes and $5,255 on utility bills annually in California.
What are the best states for first-time homebuyers?
According to Premier Timber Frame Builders, these were the 10 best states for new homebuyers in 2026
- Wyoming
- Wisconsin
- Iowa
- North Dakota
- Indiana
- Minnesota
- Ohio
- Missouri
- Arkansas
- South Dakota
What are the worst states for new homebuyers?
Premier Timber Frame Builders said these were the 10 worst states for people shopping for homes for the first time:
- Hawaii
- California
- New York
- Florida
- Washington
- Colorado
- Idaho
- Massachusetts
- Utah
- New Jersey
How did Premier Timber Frame Builders rank states?
Premier Timber Frame Builders looked at several key factors that affect how affordable it is to buy a home in each state, including median home prices, average income, mortgage costs, home insurance, property taxes and yearly utility bills.
Each state was given an overall score out of 100, showing where first-time buyers are more likely to succeed — and where they may struggle — in 2026.
The study used data from the U.S. Census Bureau, Federal Housing Finance Agency and U.S. Bureau of Economic Analysis as well as Statista and the Tax Foundation.
