The residential real estate market might be hot, but saving for that precious down payment is the holy grail, particularly among younger generations looking to buy a home in expensive markets. A new report issued by Point2, a firm that covers real estate market trends, shows a wide disparity among generations and the average time it takes each to gather the funds required for a down payment and purchase of a home.
The report’s main takeaway: Even at the current savings rate of 17 percent — more than double the pre-pandemic national savings rate of 8 percent — Americans across all generations will have to struggle for decades to save for a down payment in many cities. More specifically:
Gen Z in California is facing the longest time needed to save for a down payment. From 23.5 years to 20.9 years in expensive cities like Los Angeles and San Jose, respectively, to a surreal 94 years in Irvine.
Millennials would need 12
