"It will take a person making the median household income only 20 years to save up for a down payment. (The current median is $105,481, and the math here assumes 10 percent put aside in annual savings.) Oh, that sounds like bad news to you? Consider the fact that this is actually a better projection than what we've seen in recent years: "While two decades is a long time, this is an improvement from nearly 24 years to save for a 20 percent down payment on the median-priced home in April 2019 prior to the pandemic," per the report from StreetEasy."
"So most of us should get comfortable renting for the time being. What's going on in the rental market? Oh, well, according to the same report, the median rent in April set a new record, rising 7 percent year over year to $4,120 - "the highest StreetEasy has recorded since it began tracking rental data in 2010." Meanwhile, inventory has only gotten tighter and tighter."
Saving for a down payment on a median-priced home is projected to take about 20 years for someone earning the median household income, assuming 10 percent of income is saved annually. This projection is an improvement over earlier estimates that required nearly 24 years for a 20 percent down payment before the pandemic. Renting is likely to remain the practical option for many people. Median rent reached a new record in April, rising 7 percent year over year to $4,120, the highest level tracked since 2010. Rental inventory has continued to tighten, making apartment searching more difficult.
Read at Curbed
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