Here's How Much Generation Zers Will Need To Save For A Home in 2031
Forbes, February 10, 2019 (excerpts)
…18-year-old Gen Zers will need to save $304 every month for the next 12 years to buy a median priced U.S. home with a 10% down payment plus closing costs.
In 2019, a median priced home in the U.S. is expected to cost $265,000, but the price is predicted to increase nearly 50% by 2031, specifically another 46% to $386,310. This assumes home prices grow at a modest 3.2% per year over the next 12 years when today's 18-year-old members of Generation Z turn 30.
Location will be a deciding factor in the homeownership success of this demographic group, whose generational boundaries are a topic of debate. For this study, realtor.com focused on current 18 year olds.
“We know that certain markets in the country just have pricier real estate,” said Danielle Hale, realtor.com's chief economist….
The analysis, which includes a 13-year forecast for median home prices in the most populous metropolitan areas and different down payment savings plans, projects that Gen Zers planning to buy a home should aim to save the following amounts on a monthly basis in these locations on the West Coast and in Hawaii: San Jose, California, $1,962; San Francisco, $1,439; Los Angeles, $979; Honolulu, $946; and Oxnard, California, $877. …
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