Savers need twice as long to afford a home down payment

Summarised from 2 outlets · Updated 22 Oct, 19:58 · Archive

Prospective homebuyers now need roughly 16 years to save for a down payment, double the time required in 2019.

Prospective homebuyers now need roughly 16 years to save for a down payment and closing costs, according to a new analysis — double the time required in 2019. Rising rents and other costs have consumed a growing share of household budgets.

New York is among the hardest states in which to save for a home. A typical New York household would need to set aside roughly $1,796 every month to accumulate a 15% down payment on a home valued at $526,714 — requiring three years and eight months, nearly a full year longer than the national average of two years and nine months. For a household earning the state's median annual income of $85,820, this represents a substantial portion of monthly income.

Hawaii faces the longest savings period of any state, with residents needing an estimated five years to accumulate a 15% down payment. The typical home in Hawaii is valued at $833,340, requiring a down payment of $125,001 — the highest in the country. Even with a median household income exceeding $100,000, residents would need to save approximately $2,080 per month. California ranks second, requiring a nearly four-year-and-ten-month wait.

Housing affordability across much of the country may not return to 2018 levels until 2031, with buyers in New York City and Long Island potentially facing an even longer wait.

How it is being reported

• New Yorkers face one of the longest waits in the US to save for a home down paymentNew Yorkers, living in a high-cost state, require years to save a 15% down payment on a typical home, according to Cinch Home Services.New York Post · 22 Oct, 19:36
• How long does it take to save up for a starter home? Twice as long as it did in 2019A new analysis finds that the average renter household now needs 16 years to save for a down payment and closing costs. Rising rents and other costs have consumed a growing share of household budgets.NPR · 22 Oct, 10:00

In this story: New York · Hawaii · California · Iowa · Cinch Home Services

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