Data Shows Top 5 Worst Markets to Move From Renting to Buying Are in California

Using data from the American Community and Annual Demographia International Housing Affordability surveys, Wendell Cox evaluated 53 of the top housing metros in the U.S., gauging the best and worst markets for housing aspiration, moving from renting to buying.

A commonality between each of the severely unaffordable markets is land use restriction limiting the ability to build low-cost suburban tract housing that would boost housing affordability, per New Geography. Buildzoom.com economist Issi Romem has argued that rising land prices have caused house values to become detached from construction costs.

But there is reason for concern in Sacramento, which has seen its median multiple rise from 2.9 to 5.1 in just four years. Any continuation of such this trend could result in a material deterioration of Sacramento's value-to-rent ratio, made all the more likely by California's overly restricted housing and land use regulations.

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