Average is far exceeded in the hottest markets
Renters hoping to transition into homeowners face many years of focused household budgets, in some cases more than two decades of saving.
The US national average for a typical renter saving for a 20% down payment is 6 years according to an analysis by HotPads.
But that would be a dream for renters in the hottest markets with those in California facing more than two decades of saving to become first-time buyers.
Renters in 13 of the country's 35 largest markets can expect to spend more than 10 years saving enough money to put 20% down on the typical home.
That assumes that renters are able to save 20% of their income, a big ask in markets where rent is swallowing up 55% of their pay check.
"Home prices are outpacing incomes in many of the country's largest markets, which makes saving for a home more difficult. On top of that, the current generation of first-time buyers is dealing with unprecedented levels of student debt, making the down payment a major factor keeping young renters out of the housing market even though many young people say they have ambitions to buy,” commented HotPods economist Joshua Clark.
|
Metropolitan |
Median |
Median |
20 Percent |
Median |
Share of |
Time Spent |
Time Spent |
|
United States |
$1,480 |
$216,000 |
$43,200 |
$51,784 |
34.3% |
6 years, 5 months |
1 year, 2 months |
|
New York, NY |
$2,350 |
$428,200 |
$85,640 |
$64,316 |
43.8% |
11 years, 11 months |
2 years, 1 month |
|
Los Angeles, CA |
$2,860 |
$644,900 |
$128,980 |
$57,319 |
59.9% |
28 years, 1 month |
4 years, 11 months |
|
Chicago, IL |
$1,765 |
$219,700 |
$43,940 |
$55,406 |
38.2% |
6 years, 6 months |
1 year, 2 months |
|
Dallas, TX |
$1,650 |
$227,500 |
$45,500 |
$52,429 |
37.8% |
7 years |
1 year, 3 months |
|
Philadelphia, PA |
$1,655 |
$227,300 |
$45,460 |
$56,204 |
35.3% |
6 years, 4 months |
1 year, 2 months |
|
Houston, TX |
$1,575 |
$197,400 |
$39,480 |
$55,058 |
34.3% |
5 years, 6 months |
1 year |
|
Washington, DC |
$2,155 |
$400,000 |
$80,000 |
$70,802 |
36.5% |
8 years, 11 months |
1 year, 7 months |
|
Miami, FL |
$2,000 |
$271,900 |
$54,380 |
$47,938 |
50.1% |
11 years, 5 months |
2 years |
|
Atlanta, GA |
$1,435 |
$203,200 |
$40,640 |
$52,572 |
32.8% |
5 years, 9 months |
1 year, 1 month |
|
Boston, MA |
$2,390 |
$453,200 |
$90,640 |
$66,925 |
42.9% |
11 years, 11 months |
2 years, 1 month |
|
San Francisco, CA |
$3,425 |
$949,800 |
$189,960 |
$71,303 |
57.6% |
31 years, 6 months |
5 years, 6 months |
|
Detroit, MI |
$1,275 |
$154,100 |
$30,820 |
$53,298 |
28.7% |
4 years, 1 month |
9 months |
|
Riverside, CA |
$1,915 |
$357,200 |
$71,440 |
$48,439 |
47.4% |
14 years, 1 month |
2 years, 6 months |
|
Phoenix, AZ |
$1,450 |
$253,300 |
$50,660 |
$50,639 |
34.4% |
7 years, 8 months |
1 year, 4 months |
|
Seattle, WA |
$2,210 |
$490,200 |
$98,040 |
$64,572 |
41.1% |
12 years, 11 months |
2 years, 4 months |
|
Minneapolis, MN |
$1,650 |
$260,700 |
$52,140 |
$57,319 |
34.5% |
7 years |
1 year, 3 months |
|
San Diego, CA |
$2,650 |
$584,100 |
$116,820 |
$57,707 |
55.1% |
22 years, 7 months |
4 years |
|
St. Louis, MO |
$1,190 |
$160,400 |
$32,080 |
$50,311 |
28.4% |
4 years, 6 months |
10 months |
|
Tampa, FL |
$1,445 |
$203,700 |
$40,740 |
$47,140 |
36.8% |
6 years, 11 months |
1 year, 3 months |
|
Baltimore, MD |
$1,745 |
$264,600 |
$52,920 |
$57,697 |
36.3% |
7 years, 3 months |
1 year, 4 months |
|
Denver, CO |
$2,085 |
$398,000 |
$79,600 |
$58,720 |
42.6% |
11 years, 10 months |
2 years, 1 month |
|
Pittsburgh, PA |
$1,090 |
$140,600 |
$28,120 |
$49,697 |
26.3% |
3 years, 11 months |
9 months |
|
Portland, OR |
$1,920 |
$389,800 |
$77,960 |
$56,603 |
40.7% |
11 years, 8 months |
2 years, 1 month |
|
Charlotte, NC |
$1,360 |
$194,400 |
$38,880 |
$51,303 |
31.8% |
5 years, 7 months |
1 year |
|
Sacramento, CA |
$1,925 |
$399,100 |
$79,820 |
$56,275 |
41.0% |
12 years, 1 month |
2 years, 2 months |
|
San Antonio, TX |
$1,370 |
$184,200 |
$36,840 |
$47,263 |
34.8% |
6 years |
1 year, 1 month |
|
Orlando, FL |
$1,485 |
$225,000 |
$45,000 |
$45,431 |
39.2% |
8 years, 2 months |
1 year, 6 months |
|
Cincinnati, OH |
$1,210 |
$159,600 |
$31,920 |
$50,014 |
29.0% |
4 years, 6 months |
10 months |
|
Cleveland, OH |
$1,190 |
$140,500 |
$28,100 |
$50,045 |
28.5% |
4 years |
9 months |
|
Kansas City, MO |
$1,245 |
$179,700 |
$35,940 |
$50,598 |
29.5% |
5 years, 1 month |
11 months |
|
Las Vegas, NV |
$1,375 |
$261,900 |
$52,380 |
$45,472 |
36.3% |
9 years, 1 month |
1 year, 7 months |
|
Columbus, OH |
$1,395 |
$181,600 |
$36,320 |
$51,170 |
32.7% |
5 years, 4 months |
1 year |
|
Indianapolis, IN |
$1,230 |
$150,800 |
$30,160 |
$49,135 |
30.0% |
4 years, 5 months |
10 months |
|
San Jose, CA |
$3,635 |
$1,265,300 |
$253,060 |
$78,955 |
55.2% |
35 years, 10 months |
6 years, 4 months |
|
Austin, TX |
$1,725 |
$295,100 |
$59,020 |
$53,032 |
39.0% |
9 years, 2 months |
1 year, 8 months |
