Zillow Says U.S. Homebuyers Need 15 Years to Break Even as San Jose Nears 50
Updated
Updated · Yahoo Finance · Sep 6
Zillow Says U.S. Homebuyers Need 15 Years to Break Even as San Jose Nears 50
1 articles · Updated · Yahoo Finance · Sep 6
Summary
15 years is now the average time a U.S. buyer must own a home before it beats renting financially, according to Zillow, with the wait stretching to 49.2 years in San Jose.
8.5 years is the average time needed to save a 20% down payment on a typical single-family home, while high prices and cheap local rents can delay the break-even point even after purchase.
San Francisco at 46.9 years, San Diego at 40.4 and Los Angeles at 37.7 rank among the slowest markets, while Pittsburgh, Detroit and Indianapolis are near 11 to 12 years.
4.7 million homes is the estimated U.S. housing shortfall Zillow cites, a squeeze compounded by a 1.5% annual rise in the median existing-home price to $434,900 and a 6.89% 30-year mortgage rate.