Skip to main content

Study Details Savings Needed by Generation Z for 2031 Home Purchase

Phil Hall
Jan 31, 2019
Today’s 18-year-old will need to save $304 every month for the next 12 years in order to accumulate the 10 percent downpayment, plus closing costs, needed to buy a median-priced home, according to a new analysis by Realtor.com

Today’s 18-year-old will need to save $304 every month for the next 12 years in order to accumulate the 10 percent downpayment, plus closing costs, needed to buy a median-priced home, according to a new analysis by Realtor.com.
 
By the year 2031, when Generation Z’s 18-year-olds turn 30, Realtor.com predicted the national median home price will be $386,310. Of course, some markets will be pricier than others. For example, today’s 18-year-olds will need to save $1,962 per month if they live in San Jose, $1,439 per month if they are in San Francisco, and $979 per month if they plan a Los Angeles residence in the next 12 years. At the other end of the spectrum, considerably less savings are required for a 2031 home purchase in Youngstown, Ohio ($108 per month) and McAllen, Texas ($111 per month).
 
"Choosing to live in one of the U.S.'s larger and more expensive metros, especially on the West Coast, is going to make homeownership a difficult task, but that doesn't mean that Gen Z should give up on their dreams," said Danielle Hale, Realtor.com's Chief Economist. "The most important thing they can do is start saving as much as possible early on and let compound interest do the heavy lifting for them. They may also want to consider more affordable areas or different downpayment amounts. Some widely available programs allow downpayments as low as three percent, but a lower downpayment can mean higher ongoing monthly costs. As with most decisions, there are pros and cons and a buyer needs to think these through to determine what's best for them."

 
Published
Jan 31, 2019
Redwood Trust Names New Chief Investment Officer

Also announces planned CoreVest leadership transition to be completed on 3rd anniversary of acquisition

Industry News
Sep 27, 2022
Fannie Mae Pilot Program Seeks To Help Improve Renters' Credit

Renters, including historically underserved groups, will benefit from paying on time each month.

Industry News
Sep 27, 2022
Suffolk County Data Breach Puts Contracts On Back Burner

Cyberattack beginning Sept. 8 prevents title services from closing loans.

Tech
Sep 27, 2022
Nations Lending Opens Another Branch In Arizona

New Scottsdale branch welcomes Arizona native Christine McConnell as lead personal mortgage advisor.

Industry News
Sep 26, 2022
Nominations Open For Industry Titans Award

NMP Magazine to honor people who represent industry with professionalism.

Industry News
Sep 23, 2022
Fidelity National Names New HR Chief

Melissa Circelli previously held same position at Black Knight.

Industry News
Sep 23, 2022