Four out of five members of Generation Z want to own a home before they turn 30, realtor.com reported last Thursday. To do so, they will need to save $304 every month for the next 12 years to buy a median-priced house with a 10% down payment plus closing costs.
According to realtor.com's analysis, the median home price in the U.S. will be $386,310 in 2031— when today's 18-year-old members of Gen Z turn 30 — an increase of 46% from the expected 2019 median price of $265,000, which assumes prices grow at a very modest 3.2% per year over the next 12 years. But the amount a future buyer needs to save varies widely based on location and how much the buyer chooses to pay up front.
Monthly savings
Realtor.com broke down how much a Gen Zer would have to save monthly, starting on his 18th birthday, to afford a home in 2031, on his 30th birthday, in each of 100 metro areas, with a 5%, 10% or 20% down payment.
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Michael S. Fischer
Michael S. Fischer is a longtime contributing writer for ThinkAdvisor. He previously reported on trade and intellectual property topics for the Economist Intelligence Unit and covered the hedge fund industry for MARHedge and Reuters News Service.
