RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Reports
  • Events
  • Power Broker
  • Newsmakers
  • More
    • Publications
    • Education
No Result
View All Result
RISMedia
No Result
View All Result

Buying in the Future? Start Saving Today

Home Consumer
By Suzanne De Vita
October 23, 2018
Reading Time: 2 mins read
Buying in the Future? Start Saving Today

Property investment and house mortgage financial concept, Hand putting money coin stack with wooden house

This Could Take a While

With inventory low and prices rebounding, affordability has become one of the foremost housing issues—both for buyers entering the market, and homeowners looking for a new, but practically priced property after selling. According to new research, accumulating enough for a down payment can take over seven years—and even longer in pricey spots.

If the average buyer earning the median national income saved 10 percent of it per month, it would take 7.2 years to amass a 20 percent down payment on the average home in the U.S., according to an analysis recently released by Zillow. Buyers in California are in for the longest savings stretch: 18.4 years in Los Angeles; 18.3 years in San Francisco; and 21.8 years in San Jose—the longest of the markets in the report. Buyers have an easier path in Pittsburgh, where it takes 4.8 years, and in Cincinnati, Indianapolis and St. Louis, where it takes 5.1 years.

Zillow_Down_Payment_Q2_2018

The disparity between earnings growth and home prices is substantial, the analysis shows. Incomes have increased 52.6 percent in the past 20 years, while appreciation has hit 98.6 percent.

“The simple fact that home values have far outpaced income growth, lengthening the time needed to save for a down payment, contributes to millennials’ struggles to enter homeownership,” says Skylar Olsen, director of Economic Research at Zillow. “Saving up for a down payment can be tough, especially when the cost of everyday life outpaces the money you put into the bank. It requires good budgeting and long-term planning. It’s one reason why more and more first-time home buyers are looking to family and friends for financial help when coming up with their down payment.”

While 20 percent down is ideal by many measures, it’s not a requirement; in fact, borrowers can be eligible for as low as 3 percent, depending on the loan and their situation. For guidance, contact your REALTOR®.

“Even if you don’t have plans to buy a home in the next year or two, it’s not a bad idea to start setting aside savings for a future home purchase,” Olsen says. “It’s also important to remember that there are many options for mortgages requiring less than 20 percent down.”

For more information, please visit www.zillow.com.

DeVita_Suzanne_60x60Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

Tags: Down PaymentDown Payment SavingsHome PricesHome-BuyingHomebuyerreal estate newsReal Estate News and InformationReal Estate TrendsZillow
ShareTweetShare

Suzanne De Vita

Related Posts

Filters
Agents

Property Search Filters New Agents Should Master

June 18, 2025
Powell
Economy

Federal Reserve Leaves Interest Rates Unchanged in June Meeting

June 18, 2025
Coldwell Banker Announces 2025 30 Under 30 List
Industry News

Coldwell Banker Announces 2025 30 Under 30 List

June 18, 2025
Berkshire
Agents

A Strategic Mindset for a Shifting Market

June 18, 2025
BOSSCAT
Industry News

BOSSCAT™ and Pillar To Post Extend Exclusive Data Partnership

June 18, 2025
Applications
Industry News

A Dip After a Surge for Mortgage Applications This Week

June 18, 2025
Please login to join discussion
Tip of the Day

First Impressions Matter to Clients

Nail the first impression with these techniques, and help clients feel confident choosing you. Learn more.

Business Tip of the Day provided by

Recent Posts

  • Property Search Filters New Agents Should Master
  • Federal Reserve Leaves Interest Rates Unchanged in June Meeting
  • Coldwell Banker Announces 2025 30 Under 30 List

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies ACE Marketing Technologies LLC

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • Reports
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2025 Newsmakers
    • 2024 Newsmakers
    • 2023 Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2025 Power Broker
    • 2024 Power Broker
    • 2023 Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2025 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

X