While record-breaking price growth has raised homeowners' equity to historic levels, it has also made it nearly impossible for first-time buyers to save for a down payment.
Tomo said it took the typical borrower 7.9 years to accumulate 20% less in June, compared to 7.1 years in January 2020. This assumes a savings rate of 10% of income per month, which is high for most consumers is.
Among the top 50 metro districts, the red-hot Boise, Idaho market, saw the biggest jump in time to save over the period, from 9.3 to 12.5 years. San Diego rose from 14.6 to 16.8 years and Austin, Texas – which is forecast to be the hottest market for house price growth in 2022 – rose from 8 to 10.1 years – as of 3/17. The lowest savings times were recorded in Rochester, N.Y., at 5.7 years, and Pittsburgh and Oklahoma City at 5.8 years each.
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