LONG BEACH, Calif. — In just a few short weeks, Brandon Humphrey’s days as a renter will be behind him.
Humphrey is about to close escrow on a one-bedroom condo in Long Beach that he and his dog Sierra can soon call home. And while that’s something to celebrate, he said his road to home ownership was long and challenging.
“It’s definitely been a journey,” Humphrey said.
With just enough savings and a well-paying job, Humphrey thought he’d have more options. Between high mortgage rates and fierce competition for homes after the recent wildfires, he said the process has felt like an uphill battle.
"The combination of the fires, increased competition that’s going to be coming and shortage that’s already happening, I said, 'I got to do it now,'" Humphrey said.
Experts say the aftermath of the fires has only tightened the housing market in Los Angeles, as displaced families and investors drive up demand.
“The hit to supply, which is pushing prices up, as well as mortgage rates which are pushing up monthly payments — it’s very unaffordable for the typical homebuyer, even if they have a higher salary,” said Erika Giovannetti, consumer lending analyst with U.S. News and World Report.
Adding to the pressure is economic uncertainty from the Trump administration’s tariffs on lumber. According to one estimate from the National Association of Home Builders, the new tariffs could increase builder costs anywhere from $7,500 to $10,000, per home.
“They’re going to pass along that higher price of lumbar in the form of increasing their asking price,” Giovannetti said.
And while a home is only worth as much as someone is willing to pay for it, in a competitive market like LA, Giovannetti said the higher asking price will likely be honored.
Another challenge is stubbornly high mortgage rates.
“There’s a disconnect between where homebuyers want mortgage rates to be, and where they’re forecasted to go this year,” Giovannetti said. “A lot of homebuyers have FOMO. They want those 2%, 3%, 4% mortgage rates. And unfortunately for them, that’s just not forecast to happen at all.”
Giovannetti added that 80% of the homebuyers they surveyed across the country say they'd rather wait until mortgage rates drop before continuing their homebuying journey.
It’s what was keeping Humphrey from buying for years — until he got a new, higher-paying job in February.
Still, his mortgage will be hard to pay, he said.
“I’ll just say this: I’m going to be paying $3,000 more a month in mortgage than I was on my current rent,” Humphrey said.
And the hardest pill to swallow, he added, is that while he’s thankful to finally own property, this is still not the happy ending he was wishing for.
“I love the condo that I’m buying, but if I’m being honest, I would love a house with a yard for my dog," he said. "But that’s just not an option."
