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Millennials are struggling to buy homes.
- Only 13% of millennial renters in the US can afford a standard 20% down payment on a median-priced home in the next five years, according to a new Apartment List survey.
- Apartment List broke down the percentage of millennial renters who can afford to buy a house in 16 of the biggest US metro areas.
- In three California metro areas, less than 10% of millennial renters could put down 20% if buying a house in five years.
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Homeownership is looking ever more like a pipe dream for millennials.
Only 13% of millennial renters in the US can afford a standard 20% down payment on a median-priced home in the next five years, according to a new Apartment List survey. The survey polled over 10,000 millennials, defined as those ages 23 to 38. For a 10% down payment, that jumps to 25%; for a 5% down payment, it's 39%.
But those numbers vary depending on where you're buying a home. Apartment List broke down the percentage of millennial renters who can afford a 20%, 10%, and 5% down payment within the next five years in 16 of the biggest US metro areas.
To estimate how long it would take each renter to save, Apartment List compared millennials' current savings levels, (adjusted for inflation and wage growth) against median metro-level condo prices from the National Association of Realtors (adjusted for historical home price appreciation).
Turns out, California is a hard place to save for a home. Only 7% of millennial renters in San Francisco can afford a 20% down payment in five years - and they don't fare much better in Los Angeles or San Diego.
Here's where else millennial renters are struggling to save for a home purchase. Note that all median home prices provided are from National Association of Realtors.
