SANTA CLARA, Calif.,
Jan. 28, 2021 /PRNewswire/ -- Saving
for a down payment is one of the biggest barriers to homeownership.
For the record number of young adults who moved back home during
the pandemic fortunate to still have a job, homeownership may be
more attainable than they think, according to a new report released
today by realtor.com®.
For someone paying the U.S. median one-bedroom rent of
$1,533, it would take 11 months to
save $17,000, a 5% down payment for a
$340,000 home, the median-priced home
in the U.S., according to realtor.com®'s analysis of
listing and rental data for the U.S. and the nation's 20 largest
metros in December 2020.
Across the 20 largest metros, it would take longer, an
average of 15 months in order to save up for a 5% down payment
based on home prices and rent savings in each market. It's fastest
to save for a 5% down payment in Chicago followed by Philadelphia, and St. Louis, while it takes the longest amount
of time in Los Angeles,
San Francisco, and San Diego.
"Although many members of the millennial and Gen Z generations
were forced to move home because they lost their jobs in 2020,
others chose to forgo their rental because they had the
opportunity to work remotely and preferred to wait out the pandemic
with family," said realtor.com® Chief Economist
Danielle Hale. "For those who have
been able to channel their would-be rent into savings, the
pandemic's silver lining could be becoming a homeowner sooner than
they otherwise would have."
In Chicago, based on the median
rent for a one-bedroom apartment of $1,521, it would take 11 months to save
$16,350, a 5% down payment on the
median list price home of $327,000. At the opposite end of the
spectrum, in Los Angeles, where
the median list price for a home is just under $1 million and the median one-bedroom rent is
$2,250, it would take 22 months to
save for a 5% down payment of $50,000.
Months of Rent Needed to Save for a Typical Down Payment (20
largest metros)
Metro
|
1-bed
Median
Rent
|
Median
Listing
Price
|
5%
Down
Payment
|
Months of
Saving for
Down
Payment
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
$1,310
|
$350,000
|
$17,500
|
13
|
Boston-Cambridge-Newton, Mass.-N.H
|
$2,109
|
$649,000
|
$32,450
|
15
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
$1,521
|
$327,000
|
$16,350
|
11
|
Dallas-Fort
Worth-Arlington, Texas
|
$1,125
|
$354,000
|
$17,700
|
16
|
Denver-Aurora-Lakewood, Colo.
|
$1,495
|
$533,000
|
$26,650
|
18
|
Detroit-Warren-Dearborn, Mich.
|
$970
|
$252,000
|
$12,600
|
13
|
Houston-The
Woodlands-Sugar Land, Texas
|
$1,060
|
$330,000
|
$16,500
|
16
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
$2,250
|
$999,000
|
$49,950
|
22
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
$1,691
|
$409,000
|
$20,450
|
12
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
$1,358
|
$344,000
|
$17,200
|
13
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
$2,345
|
$627,000
|
$31,350
|
13
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md
|
$1,495
|
$327,000
|
$16,350
|
11
|
Phoenix-Mesa-Scottsdale, Ariz.
|
$1,195
|
$413,000
|
$20,650
|
17
|
Riverside-San
Bernardino-Ontario, Calif.
|
$1,610
|
$475,000
|
$23,750
|
15
|
San Diego-Carlsbad,
Calif.
|
$2,000
|
$797,000
|
$39,850
|
20
|
San
Francisco-Oakland-Hayward, Calif.
|
$2,414
|
$995,000
|
$49,750
|
21
|
Seattle-Tacoma-Bellevue, Wash.
|
$1,657
|
$628,000
|
$31,400
|
19
|
St. Louis,
Mo.-Ill.
|
$1,035
|
$232,000
|
$11,600
|
11
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
$1,225
|
$300,000
|
$15,000
|
12
|
Washington-Arlington-Alexandria,
D.C.-Va.-Md.-W.V.
|
$1,767
|
$497,000
|
$24,850
|
14
|
Methodology: To calculate down payment savings
realtor.com® analyzed listing and rental data from
December 2020. The national median
down payment was 5 percent in December.
About realtor.com®
Realtor.com® makes buying, selling, renting and
living in homes easier and more rewarding for everyone.
Realtor.com® pioneered the world of digital real estate
more than 20 years ago, and today through its website and mobile
apps is a trusted source for the information, tools and
professional expertise that help people move confidently through
every step of their home journey. Using proprietary data science
and machine learning technology, realtor.com® pairs buyers and
sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For professionals,
realtor.com® is a trusted provider of consumer
connections and branding solutions that help them succeed in
today's on-demand world. Realtor.com® is operated by
News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move,
Inc. under a perpetual license from the National Association of
REALTORS®. For more information, visit realtor.com®.
Media Contact
Janice McDill,
janice.mcdill@move.com
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SOURCE realtor.com