House prices in the district are out of step with the average earnings of first-time buyers according to a homelessness charity.
A report published by Shelter said only 30.8 per cent of homes in Kirklees are affordable.
It said that the situation was worse for single people and people hoping to buy with a lower deposit.
Chief executive Campbell Robb said: “We’re not just facing a housing shortage any more it’s a full-blown drought.
“As the pool of affordable properties shrinks ever smaller, thousands of people are being forced to wave goodbye to their dreams of a home of their own – even those who’ve been able to put aside a large deposit. It’s a bitter pill to swallow when we know that politicians can turn the tide on our housing shortage in a single parliament.
“Our failure to build more homes is leaving a whole generation of young people with no choice but to remain trapped in expensive and unstable private renting, or stuck in their childhood bedrooms for years to come, no matter how hard they work or save.”
With 69 per cent of homes considered to be unaffordable, Kirklees fell into the average for Yorkshire and the Humber but fared better than the national average, which Shelter said was 80 per cent.
The government said house prices nationally have risen by 9.9 per cent to £260,000, which is higher than the pre-crisis peak in 2008.