Homebuyers earning the median income who are trying to accumulate funds for a downpayment will need to set aside 14 years in order to reach the 20 percent threshold on a median priced home, according to the 2019 Home Affordability Report published by Unison.
Within the nation’s eight least affordable cities, the saving period will take 30 years or more: Boston (30 years), San Jose and San Diego (31), Miami and Manhattan (36), Honolulu and San Francisco (40) and Los Angeles (43). On the flip side, the time needed to save for a downpayment is much lower in Louisville, Indianapolis, Kansas City, Columbus (12 years each), Wichita (11 years) and Detroit (seven years).
“The way things are going, an entire generation of Americans may be approaching retirement before they can securely own a home or be forced to take on more risk than they can reasonably afford in order to realize their dream of homeownership,” said Unison CEO Thomas Sponholtz. “This is a societal and economic problem that impacts all income levels and can only be addressed through massive infrastructure investments and rapid adoption of smarter and safer non-debt-based finance and homeownership solutions.”