The coronavirus brought many challenges, and due to job losses and furloughs, many young adults found themselves back at their parents’ house to save money. According to a new realtor.com® report, this may be the key to homeownership affordability for the younger generations.
For those able to save their rent, those funds could convert into a down payment toward a home. Here’s a breakdown of how many months of rent it would take to save for a typical down payment in the nation’s 10 of the 20 largest metros:
Detroit-Warren-Dearborn, Mich.
One-Bed Median Rent: $970
Median Listing Price: $252,000
5 Percent Down Payment: $12,600
Months of Saving: 13
Houston-The Woodlands-Sugar Land, Texas
One-Bed Median Rent: $1,060
Median Listing Price: $330,000
5 Percent Down Payment: $16,500
Months of Saving: 16
Los Angeles-Long Beach-Anaheim, Calif.
One-Bed Median Rent: $2,250
Median Listing Price: $999,000
5 Percent Down Payment: $49,950
Months of Saving: 22
Miami-Fort Lauderdale-West Palm Beach, Fla.
One-Bed Median Rent: $1,691
Median Listing Price: $409,000
5 Percent Down Payment: $20,450
Months of Saving: 12
Minneapolis-St. Paul-Bloomington, Minn.-Wis.
One-Bed Median Rent: $1,358
Median Listing Price: $344,000
5 Percent Down Payment: $17,200
Months of Saving: 13
Atlanta-Sandy Springs-Roswell, Ga.
One-Bed Median Rent: $1,310
Median Listing Price: $350,000
5 Percent Down Payment: $17,500
Months of Saving: 13
Boston-Cambridge-Newton, Mass.-N.H
One-Bed Median Rent: $2,109
Median Listing Price: $649,000
5 Percent Down Payment: $32,450
Months of Saving: 15
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
One-Bed Median Rent: $1,521
Median Listing Price: $327,000
5 Percent Down Payment: $16,350
Months of Saving: 11
Dallas-Fort Worth-Arlington, Texas
One-Bed Median Rent: $1,125
Median Listing Price: $354,000
5 Percent Down Payment: $17,700
Months of Saving: 16
Denver-Aurora-Lakewood, Colo.
One-Bed Median Rent: $1,495
Median Listing Price: $533,000
5 Percent Down Payment: $26,650
Months of Saving: 18
“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.”
Fore more, visit RISMedia.
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