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With rising rent prices in New York, it isn't surprising to find out it's going to take us a bit to save up to buy our own property. However, this new study shares the harsh reality of how much and how long the average New Yorker will have to save in order to own a home.
RealtyHop did a study on homeownership statistics in 150 cities in the U.S. They wanted to see how long is takes for a household to save up for a home. The horrible truth is that homeownership is a pipe dream for more people. Looking at the top 5 cities, with the biggest barrier to homeownership, NYC came in fourth behind Glendale, CA, Los Angeles, CA, and Miami, FL.
In New York City, it takes homebuyers on average 12.45 years to save a 20% down payment for a home. While the median listing price of $880,000 is lower than it was during the summer of 2022, ownership remains unaffordable for those making a median household income of $70,663.
A home that in New York with a median list price of $880,000 and a required downpayment of $176,000, the buyer would need to save $14,133 a year to purchase the home in 12.45 years. However in major cities of the Midwest and South it is much easier to own. Chicago, the third most populated U.S. city it takes an average of 5.2 years for a household to qualify for a mortgage with 20%down.
You can read the full study here.