Is Oceanside A Best Or Worst City For First-Time Home Buyers?

OCEANSIDE, CA — The steady rise of home values in Oceanside over the last decade has delighted existing property owners, but has not been so great for first-time home buyers.

A recent study from WalletHub, 2021’s Best & Worst Cities for First-Time Home Buyers, ranked Oceanside 248 overall out of 300 cities. The highest score for Oceanside was in the category of Quality of Life, but Affordability and a tight Real-Estate Market brought the overall score down. (See details below).

The City of Oceanside recently released Background Report #1: Baseline Economic and Market Analysis. This report illustrates some of the challenges facing the housing market in Oceanside.

Key findings in the City report include:

The City’s residential units are primarily single-family residential uses (64%) compared to multi-family residential uses (31%).

In 2020, the City contained 177,335 residents and 63,720 households. The median household income was $73,552, significantly lower than the county.

Median Sales Price for Single-Family Homes, City vs. County (1)

Zip Code Median Sales Price
92054 (City) $698,000
92056 (City) $578,000
92057 (City) $555,000
92058 (City) $555,000
County $656,000
(1) Source: CoreLogic. Southern California Home Resale Activity, Home Sales Recorded in June 2020

As the City's report data indicates, Oceanside has fewer multi-family residential properties, that are typically more affordable than single-family. The median sales price for the Oceanside coastal zip code 92054 is above that of the average County price. However, the median household income is still significantly lower than the county. All these factors combined make for less favorable conditions for first-time home buyers in Oceanside.

See how Oceanside compared to other cities in 2021’s Best & Worst Cities for First-Time Home Buyers.

WalletHub compared 300 cities of varying sizes across 22 key indicators of market attractiveness, affordability and quality of life. Our data set ranges from cost of living to real-estate taxes to property-crime rate.

Methodology

To determine the most favorable housing markets for first-time home buyers, WalletHub compared a sample of 300 U.S. cities (varying in size) across three key dimensions: 1) Affordability, 2) Real-Estate Market and 3) Quality of Life.
We evaluated those dimensions using 22 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for first-time home buyers. Data for metrics marked with an asterisk (*) were available at the state level only.
Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. Our sample considers only the city proper in each case and excludes cities in the surrounding metro area. Each city was categorized according to the following population-size guidelines:

• Large cities: More than 300,000 people
• Midsize cities: 150,000 to 300,000 people
• Small cities: Fewer than 150,000 people

Affordability – Total Points: 33.33

• Housing Affordability: Triple Weight (~14.28 Points) Note: This metric was calculated as follows: Median House Price / Median Annual Household Income.
• Average Cost of Homeowner’s Insurance*: Full Weight (~4.76 Points)
• Cost of Living: Full Weight (~4.76 Points)
• Cost per Square Foot: Full Weight (~4.76 Points) Note: This metric measures specifically the median list price per average home square footage.
• Real-Estate Tax Rate: Full Weight (~4.76 Points)

Real-Estate Market – Total Points: 33.33

• Rent-to-Price-Ratio: Double Weight (~6.06 Points)
• Median Days on the Market: Full Weight (~3.03 Points)
• Median Home-Price Appreciation: Double Weight (~6.06 Points)
• Foreclosure Rate: Full Weight (~3.03 Points)
• Share of Housing Units Built between 2010 and 2019: Full Weight (~3.03 Points)
• Building-Permit Activity: Full Weight (~3.03 Points) Note: This metric measures the number of unit permits pulled per 1,000 residents.
• Mortgage Lenders per Capita: Full Weight (~3.03 Points)
• Real Estate Agents per Capita: Full Weight (~3.03 Points)
• Homeownership Rate for Millennials: Full Weight (~3.03 Points)

Quality of Life – Total Points: 33.33

• WalletHub’s “States that are Recovering the Quickest from COVID-19” Score: Triple Weight (~9.09 Points) Note: This metric in based on WalletHub’s “States that are Recovering the Quickest from COVID-19” ranking.
• Weather: Full Weight (~3.03 Points) Note: This metric is based on WalletHub’s “Cities with the Best & Worst Weather” ranking.
• Quality of School System*: Double Weight (~6.06 Points) Note: This metric is based on WalletHub’s “States with the Best & Worst School Systems” ranking.
• Driver-Friendliness: Full Weight (~3.03 Points) Note: This metric is based on WalletHub’s “Best & Worst Cities to Drive in” ranking.
• Job Market: Full Weight (~3.03 Points) Note: This metric is based on WalletHub’s “Best & Worst Cities for Jobs” ranking.
• Total Home-Energy Cost: Full Weight (~3.03 Points)
• Violent-Crime Rate: Full Weight (~3.03 Points)
• Property-Crime Rate: Full Weight (~3.03 Points)

Have a news tip or suggestion on how we can improve Oceanside-Camp Pendleton Patch? Interested in advertising your business in Oceanside? Email any inquiries to me at lisa.frost@patch.com.

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