A single home buyer would need to save for nearly 11 years to reach a 20 percent down payment on the typical U.S. home, according to a new Zillow® analysis.
For married or partnered couples, it would take less than five years. In San Jose, California, a single buyer would need more than 30 years to save for a down payment – longer than the lifespan of a typical home loan.
Zillow’s analysis combined home values and income data from Census to estimate how long it would take for both an individual and couple to save for a 20% down payment on the median-priced home, assuming they saved 10% of their income every year.
Single buyers typically have a smaller budget than couples, which leaves them with fewer homes to choose from and limits them to the most in-demand portion of the housing stock. The number of homes for sale is limited across the country, down nearly 11% over the past year, and nearly 18% for the least expensive homes. A single person could afford to buy less than half (45%) of the U.S. housing stock, compared to a married or partnered couple, who could afford 82% of all homes.
“Nearly two-thirds of Americans agree that buying a home is a central part of living the American Dream, but for unmarried or un-partnered Americans, that dream is increasingly out of reach,” said Zillow senior economist Aaron Terrazas. “Single buyers typically have more limited budgets, which means they are likely competing for lower-priced homes that are in high demand. Having two incomes allows buyers to compete in higher priced tiers where competition is not as stiff.”
The difference between what a single person could afford compared to a couple is greatest in Portland, Oregon, and Sacramento, California. In Portland, 73% of homes are affordable to a couple, but only 6% are affordable to a single buyer. For Sacramento buyers, a couple could afford 75% of homes while a single home buyer could afford 8 percent of homes.
Single buyers will have it easiest in Indianapolis, where saving for a down payment takes less than eight years, and they can afford the highest share of homes among the largest American housing markets.
