SEATTLE, Feb. 9, 2018 /PRNewswire/ -- In today's highly
competitive housing market, finding an affordable home can feel
increasingly out of reach, especially for singles.
A single homebuyer would need to save for nearly 11 years to
reach a 20 percent down payment on the typical U.S. home, according
to a new Zillow® analysis. However, for married or partnered
couples, it would take less than five years. In San Jose, California, a single buyer would
need more than 30 years to save for a down payment – longer than
the lifespan of a typical home loan.
Zillow's analysis combined home values and income data from
Census to estimate how long it would take for both an individual
and couple to save for a 20 percent down payment on the
median-priced home, assuming they saved 10 percent of their income
every year.
Single buyers typically have a smaller budget than couples,
which leaves them with fewer homes to choose from and limits them
to the most in-demand portion of the housing stock. The number of
homes for sale is limited across the country, down nearly 11
percent over the past year, and nearly 18 percent for the least
expensive homes. A single person could afford to buy less than half
(45 percent) of the U.S. housing stock, compared to a married or
partnered couple, who could afford 82 percent of all homes.
"Nearly two-thirds of Americans agree that buying a home is a
central part of living the American Dream, but for unmarried or
un-partnered Americans, that dream is increasingly out of reach,"
said Zillow senior economist Aaron
Terrazas. "Single buyers typically have more limited
budgets, which means they are likely competing for lower-priced
homes that are in high demand. Having two incomes allows buyers to
compete in higher priced tiers where competition is not as
stiff."
The difference between what a single person could afford
compared to a couple is greatest in Portland, Oregon, and Sacramento, California. In Portland, 73 percent of homes are affordable
to a couple, but only 6 percent are affordable to a single buyer.
For Sacramento buyers, a couple
could afford 75 percent of homes while a single homebuyer could
afford 8 percent of homes.
Single buyers will have it easiest in Indianapolis, where saving for a down payment
takes less than eight years, and they can afford the highest share
of homes among the largest American housing markets.
|
Years to Save for
a
Down Payment
|
Percent of
Housing
Stock Affordable
|
Maximum Value
of
Affordable Home
|
Median
Household
Income
|
Metropolitan
Area
|
Married
/
Partnered
|
Single
|
Married
/
Partnered
|
Single
|
Married
/
Partnered
|
Single
|
Married
/
Partnered
|
Single
|
United
States
|
4.6
|
10.8
|
82
|
45
|
$412,736
|
$176,098
|
$80,800
|
$34,500
|
New York-Northern New
Jersey
|
7.5
|
18.8
|
64
|
10
|
$521,518
|
$208,055
|
$ 103,000
|
$41,200
|
Los Angeles-Long
Beach-Anaheim, CA
|
13.4
|
26.8
|
24
|
2
|
$438,458
|
$222,589
|
$86,000
|
$42,800
|
Chicago,
IL
|
4.2
|
10.2
|
91
|
48
|
$486,310
|
$197,020
|
$95,000
|
$39,000
|
Dallas-Fort Worth,
TX
|
4.4
|
9.6
|
90
|
54
|
$440,698
|
$205,047
|
$87,800
|
$40,000
|
Philadelphia,
PA
|
4.2
|
10.9
|
92
|
44
|
$491,885
|
$193,877
|
$99,000
|
$38,000
|
Houston,
TX
|
4.0
|
8.8
|
91
|
58
|
$438,272
|
$197,571
|
$85,000
|
$39,000
|
Washington,
DC
|
5.8
|
12.4
|
82
|
34
|
$652,892
|
$303,901
|
$ 129,000
|
$60,000
|
Miami-Fort
Lauderdale, FL
|
6.6
|
13.9
|
73
|
31
|
$361,991
|
$172,508
|
$71,000
|
$33,700
|
Atlanta,
GA
|
3.8
|
8.3
|
90
|
60
|
$440,196
|
$205,081
|
$87,000
|
$40,000
|
Boston, MA
|
6.8
|
17.6
|
74
|
10
|
$587,535
|
$228,239
|
$ 116,000
|
$45,200
|
San Francisco,
CA
|
12.6
|
27.8
|
33
|
2
|
$656,277
|
$286,329
|
$ 128,000
|
$58,000
|
Detroit,
MI
|
3.0
|
8.0
|
96
|
60
|
$453,958
|
$164,167
|
$87,400
|
$32,300
|
Riverside,
CA
|
8.6
|
17.5
|
65
|
11
|
$367,681
|
$177,581
|
$72,300
|
$35,300
|
Phoenix,
AZ
|
5.7
|
11.7
|
84
|
38
|
$393,648
|
$194,090
|
$77,500
|
$38,000
|
Seattle,
WA
|
7.6
|
17.1
|
68
|
12
|
$529,317
|
$234,656
|
$ 103,200
|
$46,000
|
Minneapolis-St Paul,
MN
|
4.6
|
11.1
|
93
|
39
|
$512,526
|
$209,175
|
$ 100,000
|
$41,000
|
San Diego,
CA
|
11.0
|
22.2
|
40
|
3
|
$471,840
|
$234,123
|
$93,000
|
$46,100
|
St. Louis,
MO
|
3.3
|
8.1
|
95
|
63
|
$443,217
|
$179,537
|
$88,000
|
$35,300
|
Tampa, FL
|
4.7
|
10.5
|
87
|
45
|
$360,353
|
$163,258
|
$71,000
|
$32,200
|
Baltimore,
MD
|
4.6
|
11.2
|
91
|
42
|
$562,327
|
$229,242
|
$ 110,000
|
$45,000
|
Denver, CO
|
7.0
|
14.5
|
79
|
17
|
$495,133
|
$238,822
|
$98,000
|
$47,000
|
Pittsburgh,
PA
|
3.1
|
8.1
|
96
|
63
|
$429,967
|
$162,840
|
$83,650
|
$32,000
|
Portland,
OR
|
7.6
|
16.8
|
73
|
6
|
$456,201
|
$204,963
|
$89,700
|
$40,400
|
Charlotte,
NC
|
4.0
|
9.5
|
89
|
51
|
$402,000
|
$172,054
|
$80,000
|
$34,000
|
Sacramento,
CA
|
7.5
|
17.0
|
75
|
8
|
$459,278
|
$201,205
|
$90,000
|
$40,000
|
San Antonio,
TX
|
4.0
|
8.4
|
93
|
63
|
$394,830
|
$184,231
|
$76,000
|
$36,300
|
Orlando,
FL
|
5.4
|
10.8
|
87
|
43
|
$350,919
|
$177,219
|
$70,000
|
$35,000
|
Cincinnati,
OH
|
3.3
|
8.5
|
96
|
61
|
$443,360
|
$171,656
|
$87,000
|
$33,600
|
Cleveland,
OH
|
3.1
|
8.0
|
96
|
66
|
$403,868
|
$164,204
|
$81,300
|
$32,000
|
Kansas City,
MO
|
3.4
|
8.2
|
96
|
65
|
$443,150
|
$187,805
|
$87,000
|
$36,650
|
Las Vegas,
NV
|
5.5
|
11.4
|
88
|
38
|
$372,010
|
$182,161
|
$74,000
|
$35,800
|
Columbus,
OH
|
3.6
|
8.3
|
95
|
62
|
$440,449
|
$192,054
|
$85,000
|
$37,440
|
Indianapolis,
IN
|
3.1
|
7.5
|
96
|
71
|
$425,609
|
$176,828
|
$83,800
|
$35,000
|
San Jose,
CA
|
14.0
|
30.7
|
22
|
1
|
$693,211
|
$369,555
|
$ 136,200
|
$62,200
|
Austin, TX
|
5.1
|
11.1
|
87
|
42
|
$497,165
|
$233,188
|
$99,000
|
$45,600
|
Zillow
Zillow is the leading real estate and rental
marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with the best local professionals who can help. In
addition, Zillow operates an industry-leading economics and
analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts, and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Launched in 2006, Zillow is owned and operated by Zillow
Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
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