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- Rising home prices and personal debt are taking a toll on homeownership in the US, according to home ownership investment company Unison’s 2019 Home Affordability Report.
- The report takes a look at how long it would take a median-income earner in each of 12 major US cities to save for a 20% down payment on a median-priced home.
- The results of the report are based on homebuyers who save 5% of their annual earnings and spend 30% or less of their grossly income on monthly payments.
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With home prices and personal debt on the rise, the dream of homeownership is becoming more unrealistic for many prospective homebuyers in metropolitan areas.
Unison’s 2019 Home Affordability Report uses 2017 and 2018 median household income data from S&P Global to examine how long it takes to save for a 20% down payment in 12 major US cities. The report measured each city’s median household income against its median home value and found that on average, it takes median-income earners 14 years to save enough money for a down payment in the US.
The report’s findings are based on homebuyers who save 5% of their annual earnings and spend 30% or less of their grossly income on monthly payments. The report assumes a 4.54% mortgage interest rate on 2018 data and a 3.99% mortgage interest rate on 2017 data.
Here’s a breakdown of how long it takes to save up for a down payment in 12 major US cities:
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