Back in August of 2021 a report was released stating that NYC rent had surpassed all other U.S. city’s in cost, and by July of last year soaring rents were pricing out a third of NYC tenants.
And with that, along with lingering impacts from the pandemic, the dream of buying a home in NY may unfortunately be harder than we think.
RealtyHop took a look at homeownership statistics in the 150 most-populated cities in the U.S. to see how long it takes for a household to save up for a home, and the truth is homeownership is more unattainable than ever.
When looking at the top 5 cities with the biggest barrier to homeownership, NYC came in fourth behind Glendale, CA, Los Angeles, CA, and Miami, FL.
In New York City, it takes homebuyers on average 12.45 years to save a 20% down payment for a home. While the median listing price of $880,000 is lower than it was during the summer of 2022, ownership remains unaffordable for those making a median household income of $70,663.
To acquire a home in NY at a median list price of $880,000 and a required downpayment of $176,000, buyers would have to save $14,133 each year to have enough to purchase the house within 12.45 years.
Comparatively, it’s easier for a household to meet the 20% down payment requirement in the Midwest and South. For example, in Chicago, the third most populated U.S. city, it takes 5.2 years for a household to qualify for a mortgage with 20% down–7.3 years less than in New York.
And as for the cities with the lowest barrier to homeownership, the top 5 are Detroit, MI, Wichita, KS, Toledo, OH , Akron, OH, and Fort Wayne, IN.
For those who are looking for some tips for obtaining a mortgage and buying a home, fortunately RealtyHop is sharing some of their own, including:
- Make sure you start saving now
- Know your credit score
- Keep track of your income, expenses, as well as tax filing documents
- Choose a mortgage broker
You can read the full study here.