- May 1, 2021: Vol. 8, Number 5

Steep hill to climb for young, aspiring homebuyers

by Mike Consol

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 Zin 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.
  • Millennialswould need 12 years to save for a down payment in Los Angeles, 11 years in Long Beach, and 10 years in the California cities of Anaheim, Irvine and Santa Ana. Ditto for New York City.
  • Gen Xand younger baby boomers, who have very similar incomes, would need more than 10 years of savings in Los Angeles, Oakland, San Francisco and New York City
  • Older baby boomers are looking at 24 cities where it would take more than 10 years to save for the down payment. The biggest challenges are San Francisco, Miami, Boston, and New York City, where older Baby Boomers would need more than 20 years of savings.

Read the complete report at this link:


Mike Consol ( is editor of Real Assets Adviser. Follow him on Twitter @mikeconsol to read his latest postings.


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