Housing Markets that Pose the Most Difficulty when Saving for a Down Payment
Saving has become more difficult over the last decade and in some housing markets, it has become even harder to save at least 20% for a down payment on a home purchase. So what are some of the most difficult housing markets to save money in?
According to National Mortgage News, Tucson, Myrtle Beach, Daytona Beach, Laredo, Bakersfield, Asheville, Port St. Lucie, Visalia, Fort Myers, Fresno, Merced and Eugene are the housing markets where buyers struggle the most when saving for a 20% downpayment.
"Nationwide, for a couple, it takes 4.6 years to save enough to make a 20% down payment on a home, according to a study from Zillow that combines home values and 2016 income data from the U.S. Census," according to the report.
"It takes a single person more than double to save, an average of 10.8 years. The study uses an assumption of a consumer saving 10% of his and/or her income per year."
The worry with the increasing hardships in saving for a new home is that it may be too far out of reach for a large portion of unmarried or un-partnered couples. Inflation coupled with insufficient wages for single individuals has made it much more difficult to save in present times.
Though, statistics prove that the likelihood of reaching the goal of becoming a homeowner is greater with a partner.
"A single person could afford to purchase only 45% of the U.S. housing stock, but a married or partnered couple could afford 82% of all homes, Zillow said," according to NMN.
To learn more about the increasing difficulties in saving for a home, click on the image above.
