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Moving Home Could Help Renters Save for a Down Payment in Less than Two Years

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Realtor.com® analysis shows home ownership may be within reach for young people able to channel would-be rent into savings

— Based on U.S. median one-bedroom rent, it would take 11 months to save for a 5% down payment for the median priced home in the U.S.

— Eleven months of rent savings is enough to accumulate a 5% down payment for a $327,000 home in Chicago

— It takes the longest — nearly 22 months of rent savings — to save for a 5% down payment for a median priced home in Los Angeles

Santa Clara, CA – Jan. 28, 2021 (PRNewswire) — Saving for a down payment is one of the biggest barriers to homeownership. For the record number of young adults who moved back home during the pandemic fortunate to still have a job, homeownership may be more attainable than they think, according to a new report released today by realtor.com®.

For someone paying the U.S. median one-bedroom rent of $1,533, it would take 11 months to save $17,000, a 5% down payment for a $340,000 home, the median-priced home in the U.S., according to realtor.com®‘s analysis of listing and rental data for the U.S. and the nation’s 20 largest metros in December 2020.

Across the 20 largest metros,  it would take longer, an average of 15 months in order to save up for a 5% down payment based on home prices and rent savings in each market. It’s fastest to save for a 5% down payment in Chicago followed by Philadelphia, and St. Louis, while it takes the longest amount of time in Los Angeles, San Francisco, and San Diego.

“Although many members of the millennial and Gen Z generations were forced to move home because they lost their jobs in 2020, others chose to forgo their rental  because they had the opportunity to work remotely and preferred to wait out the pandemic with family,” said realtor.com® Chief Economist Danielle Hale. “For those who have been able to channel their would-be rent into savings, the pandemic’s silver lining could be becoming a homeowner sooner than they otherwise would have.”

In Chicago, based on the median rent for a one-bedroom apartment of $1,521, it would take 11 months to save $16,350, a 5% down payment on the median list price home of $327,000.  At the opposite end of the spectrum, in Los Angeles, where the median list price for a home is just under $1 million and the median one-bedroom rent is $2,250, it would take 22 months to save for a 5% down payment of $50,000.

Months of Rent Needed to Save for a Typical Down Payment (20 largest metros)

Metro1-bed
Median
Rent		Median
Listing
Price		5%
Down
Payment		Months of
Saving for
Down
Payment
Atlanta-Sandy Springs-Roswell, Ga.$1,310$350,000$17,50013
Boston-Cambridge-Newton, Mass.-N.H$2,109$649,000$32,45015
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.$1,521$327,000$16,35011
Dallas-Fort Worth-Arlington, Texas$1,125$354,000$17,70016
Denver-Aurora-Lakewood, Colo.$1,495$533,000$26,65018
Detroit-Warren-Dearborn, Mich.$970$252,000$12,60013
Houston-The Woodlands-Sugar Land, Texas$1,060$330,000$16,50016
Los Angeles-Long Beach-Anaheim, Calif.$2,250$999,000$49,95022
Miami-Fort Lauderdale-West Palm Beach, Fla.$1,691$409,000$20,45012
Minneapolis-St. Paul-Bloomington, Minn.-Wis.$1,358$344,000$17,20013
New York-Newark-Jersey City, N.Y.-N.J.-Pa.$2,345$627,000$31,35013
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md$1,495$327,000$16,35011
Phoenix-Mesa-Scottsdale, Ariz.$1,195$413,000$20,65017
Riverside-San Bernardino-Ontario, Calif.$1,610$475,000$23,75015
San Diego-Carlsbad, Calif.$2,000$797,000$39,85020
San Francisco-Oakland-Hayward, Calif.$2,414$995,000$49,75021
Seattle-Tacoma-Bellevue, Wash.$1,657$628,000$31,40019
St. Louis, Mo.-Ill.$1,035$232,000$11,60011
Tampa-St. Petersburg-Clearwater, Fla.$1,225$300,000$15,00012
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.$1,767$497,000$24,85014

Methodology: To calculate down payment savings realtor.com® analyzed listing and rental data from December 2020. The national median down payment was 5 percent in December.

About realtor.com®

Realtor.com® makes buying, selling, renting and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate more than 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today’s on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.

SOURCE realtor.com

Renting A Home More Affordable Than Buying In 59 Percent Of U.S. Housing Markets

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Home Prices Outpacing Wages in 80 Percent of the U.S. Housing Markets

Irvine, CA – Jan. 10, 2019 (PRNewswire) ATTOM Data Solutions, curator of the nation’s premier property database, today released its 2019 Rental Affordability Report, which shows that renting a three-bedroom property is more affordable than buying a median-priced home in 442 of 755 U.S. counties analyzed for the report — 59 percent.

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The analysis incorporated recently released fair market rent data for 2019 from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics along with public record sales deed data from ATTOM Data Solutions in 755 U.S. counties with sufficient home sales data (see full methodology below).

“With rental affordability outpacing home affordability in the majority of U.S. housing markets, and home prices rising faster than rental rates, the American dream of owning a home, may be just that — a dream,” said Jennifer von Pohlmann, director of content and PR at ATTOM Data Solutions. “With home price appreciation increasing annually at an average of 6.7 percent in those counties analyzed for this report and rental rates increasing an average of 3.5 percent, coupled with the fact that home prices are outpacing wages in 80 percent of the counties, renting a home is clearly becoming the more attractive option in this volatile housing market.”

More Affordable to Rent Than Buy in Most U.S. Markets

More Affordable to Rent Than Buy in Most U.S. Markets

Renting more affordable than buying in nation’s most populated counties
Renting is more affordable than buying a home in the nation’s 18 most populated counties and in 37 of 40 counties with a population of 1 million or more (93 percent) — including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California.

Other markets with a population of more than 1 million where it is more affordable to rent than to buy a home included counties in Miami, New York City, Seattle, Las Vegas, San Jose, San Francisco and Boston.

Among the 40 U.S. counties analyzed in the report with a population of 1 million or more, the three where it is more affordable to buy a home than rent were Wayne County (Detroit), Michigan; Philadelphia County, Pennsylvania; and Cuyahoga County (Cleveland), Ohio.

Buy or Rent in 2019 Heat Map

Least affordable rental markets in Northern California, Hawaii, D.C.
The report shows that renting a three-bedroom property requires an average of 38.0 percent of weekly wages across the 755 counties analyzed for the report.

The least affordable markets for renting are Santa Cruz County, California (81.7 percent of average wages to rent); Honolulu County, Hawaii (74.4 percent); Spotsylvania County, Virginia (73.0 percent); Maui County, Hawaii (69.5 percent); San Benito County, California (68.6 percent); Monroe County, Florida (67.3 percent); Sonoma County (Santa Rosa area), California (66.0 percent); Marin County (San Francisco area), California (65.6 percent); and Kings County, New York (63.7 percent).

Most affordable rental markets in Ohio, North Carolina, Wisconsin, Pennsylvania
The most affordable markets for renting are Roane County (Knoxville area), Tennessee (19.7 percent of average wages to rent); Peoria County, Illinois (23.8 percent); Mcminn County (Athens), Tennessee (23.8 percent); Green County (Dayton), Ohio (24.2 percent); and Rhea County (Dayton area), Ohio (24.6 percent).

Among counties with a population of 1 million or more, those most affordable for renting are Allegheny County (Pittsburgh), Pennsylvania (25.1 percent); Cuyahoga County (Cleveland), Ohio (25.6 percent); Saint Louis County, Missouri (26.4 percent); Oakland County (Detroit area), Michigan (26.7 percent); and Wayne County (Detroit), Michigan (27.7 percent).

Rent growth outpacing wage growth in 52 percent of markets
Average fair market rents rose faster than average weekly wages in 394 of the 755 counties analyzed in the report (52 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; and San Diego County, California.

Average weekly wages rose faster than average fair market rents in 361 of the 755 counties analyzed in the report (48 percent), including Kings County (Brooklyn), New York; Queens County, New York; Clark County (Las Vegas), Nevada; Tarrant County (Dallas-Fort Worth), Texas; Santa Clara (San Jose), California; Broward County (Miami), Florida; and Alameda (San Francisco), California.

Home prices rising faster than wages in 80 percent of markets
Median home prices rose faster than average weekly wages in 601 of the 755 counties analyzed in the report (80 percent), including Los Angeles County, California; Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida.

Average weekly wages rose faster than median home prices in 154 of the 755 counties analyzed in the report (20 percent), including Kings County (Brooklyn), New York; Queens County, New York; King County (Seattle), Washington; Suffolk County, New York; and Bronx County, New York.

Home prices rising faster than rents in 70 percent of markets
Median home prices rose faster than average fair market rents in 531 of the 755 counties analyzed in the report, including Cook County (Chicago), Illinois; Harris County (Houston), Texas; Maricopa County (Phoenix), Arizona; Kings County (Brooklyn), New York; Queens County, New York; and Riverside County, California.

Average fair market rents rose faster than median home prices in 224 of the 755 counties analyzed in the report (30 percent), including Los Angeles County, California; San Diego County, California; Orange County, California; Miami-Dade County, Florida; Dallas County, Texas; and Kings County (Seattle), Washington.

Methodology
For this report, ATTOM Data Solutions looked at 50th percentile average rental data for three-bedroom properties in 2018 from the U.S. Department of Housing and Urban Development, along with Q2 2018 average weekly wage data from the Bureau of Labor Statistics (most recent available) and January-November (YTD) 2018 home price data from ATTOM Data Solutions publicly recorded sales deed data in 755 counties nationwide.

Rental affordability is average fair market rent for a three-bedroom property as a percentage of the average monthly wage (based on average weekly wages). Home buying affordability is the monthly house payment for a median-priced home (based on a 3 percent down payment and including mortgage, property tax, homeowner’s insurance and private mortgage insurance) as a percentage of the average monthly wage.

About ATTOM Data Solutions
ATTOM Data Solutions provides premium property data to power products that improve transparency, innovation, efficiency and disruption in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population. A rigorous data management process involving more than 20 steps validates, standardizes and enhances the data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 9TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include bulk file licenses, APIs, market trends, marketing lists, match & append and more.

Media Contact:
Christine Stricker
(949) 748-8428
christine.stricker@attomdata.com

Data and Report Licensing:
(949) 502-8313
datareports@attomdata.com



Rental Discounts are Scarce Amidst Strong Summer Demand

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The number of rental units offering discounts hit new lows while rents reached all-time highs, according to the July 2018 StreetEasy Market Reports

NEW YORK, Aug. 22, 2018 /PRNewswire/ — Heightened competition during peak moving season has given the rental market a boost in July, as a rush of new residents arrive in the city and current residents move into new apartments. The share of units discounted fell city-wide, reaching its lowest point in Manhattan and Brooklyn since 2011, according to the July 2018 StreetEasy Market Reports(i).

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Rental discounts decreased the most in Manhattan where only one in ten units offered a discount during the month of July, down from nearly one in five apartments during the same time last year – a drop of 9.1 percentage points. Brooklyn and Queens saw similar declines with the share of discounts down by 6.9 and 5.7 percentage points since last year, respectively.

As discounts fell across the city, StreetEasy also recorded rents climbing to all-time highs in Manhattan, Brooklyn and Queens. According to the StreetEasy Rent Index(ii), Manhattan rents rose to $3,225, an increase of 1.6 percent over last year, marking the fastest year-over-year rise in rents the borough has experienced in 18 months. Despite this accelerating rate of growth, it is still much slower than the monthly rate of growth that occurred between 2013 and 2016, when StreetEasy recorded 3 to 5 percent increases.

“While it’s typical to see rents peak in the summer months, the dramatic lack of discounts in July made it clear that the surge of new grads and new employees entering the city’s workforce gave landlords the upper hand this summer,” says StreetEasy Senior Economist Grant Long. “Renters are generally in a weaker negotiating position than last summer, particularly in highly sought-after neighborhoods around the city. Those able to afford the high price of entry to newer, amenity-rich buildings may have more luck; buildings in areas dense with new development remain among the most likely to offer incentives to lure new tenants.”

See below for additional rental and sales market trends across Manhattan, Brooklyn and Queens.

July 2018 Key Findings — Manhattan

  • Rents rose in all Manhattan submarkets. The StreetEasy Manhattan Rent Index reached an all-time high of $3,225, an increase of 1.6 percent over last year. Upper Manhattan(iii), the least expensive submarket, experienced the largest jump with rents rising 2.8 percent to $2,372.
  • Manhattan rental discounts dropped the most among the boroughs. The share of Manhattan rentals offering discounts fell to 9.8 percent, a 9.1 percentage point drop from last year. Discounts fell in all five Manhattan submarkets, with the share in Downtown Manhattan(iv) dropping from 10.4 percent to 9.7 percent of rentals.
  • Upper West Side sales prices dipped to 2016 levels(v). The StreetEasy Price Index(vi) fell 5.2 percent in the Upper West Side to $1,101,567 – the lowest level since 2016. Borough-wide, prices were stagnant since last year at $1,155,467.
  • Manhattan homes sold a week faster. The median days on market fell to 76 days in the borough, with homes selling 8 days faster than last year. Downtown homes sold more than three weeks faster than last year – down to a median of 74 days spent on the market.
  • Sales inventory continued to rise. Sales inventory rose 14.3 percent year-over-year. Inventory in Upper Manhattan increased the most: up 24.5 percent since last year.
  • Despite rising inventory, price cuts dipped. The share of for-sale homes offering discounts dropped to just 5.2 percent, a 5.2 percentage point decrease since last year.

July 2018 Key Findings — Brooklyn

  • Rents rose in all submarkets except North Brooklyn. The StreetEasy Brooklyn Rent Index hit an all-time high of $2,599, an increase of 1.5 percent. Rents rose in all submarkets except for North Brooklyn(vii) where rents stagnated at $3,073, potentially caused by cooling interest among renters due to the impending L train shutdown./li>
  • Rental discounts decreased dramatically. The share of rentals with a discount fell to 8.1 percent in Brooklyn – a 6.9 percentage point decrease from last year. North Brooklyn had the largest share of discounted rentals at 11.1 percent, though the submarket still experienced a 9.4 percentage point decrease in discounts since last year. /li>
  • Home prices were unchanged. The StreetEasy Brooklyn Price Index stagnated at $741,900. Sales prices in North Brooklyn rose 4 percent year-over-year, reaching $1,216,360./li>
  • North Brooklyn homes sold seven weeks faster. Homes for sale in North Brooklyn spent a median of 52 days on the market, down from the 100 days they spent on the market at this time last year. Borough-wide, homes sold in 71 days, five days faster than last year./li>
  • Price cuts fell across the borough. The share of Brooklyn homes with a price cut fell to five percent of all homes, a decline of 3.9 percentage points. Price cuts declined in every submarket, led by North Brooklyn where 3.7 percent of homes were discounted, 7.7 percentage points less than last year./li>
  • Inventory rose across the borough, except in North Brooklyn. Sales inventory increased 17.5 percent in Brooklyn. North Brooklyn was the only submarket to experience a dip in inventory, down 4.1 percent compared to this time last year.

July 2018 Key Findings — Queens

  • Rents remained flat. The StreetEasy Queens Rent Index stagnated at $2,155. Rents rose slightly in Central Queens(viii), up 1.6 percent annually to $2,093.
  • Rental discounts dropped in all submarkets. Only 7.5 percent of Queens rentals experienced a discount in July, a 5.7 percent decrease from last year. In Northwest Queens(ix), discounts dropped the most: 7.2 percent of rentals had their price cut, down 8.4 percent from last year.
  • Prices continued to rise. The StreetEasy Queens Price Index increased again, as it has since 2013. Prices rose 7.2 percent year-over-year to $530,917.
  • Price cuts became even more rare. The share of Queens homes offering price cuts dropped to 3.8 percent, down 5.5 percentage points from last year. In Northeast Queens(x), just 3 percent of homes had their prices cut, down 6.8 percentage points since last year.
  • Queens was the only borough where inventory fell. The number of Queens homes for sale dropped by 6.9 percent. Northwest Queens and Central Queens were the only areas in the borough to see an uptick, rising 13 percent and 5.5 percent, respectively.

The complete StreetEasy Market Reports for Manhattan, Brooklyn and Queens, with additional neighborhood data and graphics, can be viewed at streeteasy.com/blog/research/market-reports/. Definitions of StreetEasy’s metrics and monthly data from each report can be downloaded at streeteasy.com/blog/download-data/.

About StreetEasy

StreetEasy is New York City’s leading local real estate marketplace on mobile and the web, providing accurate and comprehensive for-sale and for-rent listings from hundreds of real estate brokerages throughout New York City and the NYC metropolitan area. StreetEasy adds layers of proprietary data and useful search tools to help home shoppers and real estate professionals navigate the complex real estate markets within the five boroughs of New York City, as well as Northern New Jersey.

Launched in 2006, StreetEasy is based in the Flatiron neighborhood of Manhattan. StreetEasy is owned and operated by Zillow Group (NASDAQ: Z and ZG).

StreetEasy is a registered trademark of Zillow, Inc.

(i) The StreetEasy Market Reports are a monthly overview of the Manhattan, Brooklyn and Queens sales and rental markets. Every three months, a quarterly analysis is published. The report data is aggregated from public recorded sales and listings data from real estate brokerages that provide comprehensive coverage of Manhattan, Brooklyn and Queens, with more than a decade of history for most metrics. The reports are compiled by the StreetEasy Research team. For more information, visit https://streeteasy.com/blog/research/market-reports/. StreetEasy tracks data for all five boroughs within New York City, but currently only produces reports for Manhattan, Brooklyn and Queens.

(ii) The StreetEasy Rent Indices are monthly indices that track changes in rent for all housing types and are currently available from January 2007 in Manhattan, January 2010 in Brooklyn and January 2012 in Queens. Each index uses a repeat-sales method similar that used to calculate the StreetEasy Price Indices. The repeat method evaluates rental price growth based on homes in a given geography that have listed for rent more than once. More details on methodology here.

(iii) The Upper Manhattan submarket includes Central Harlem, East Harlem, Hamilton Heights, Inwood, Manhattanville, Marble Hill, Washington Heights and West Harlem.

(iv) The Downtown Manhattan submarket includes Battery Park City, Chelsea, Chinatown, Civic Center, East Village, Financial District, Flatiron, Gramercy Park, Greenwich Village, Little Italy, Lower East Side, Nolita, SoHo, Stuyvesant Town/PCV, Tribeca and the West Village.

(v) The Upper West Side submarket includes Lincoln Square, Manhattan Valley, Morningside Heights and the Upper West Side.

(vi) The StreetEasy Price Indices track changes in resale prices of condo, co-op, and townhouse units. Each index uses a repeat-sales method of comparing the sales prices of the same properties since January 1995 in Manhattan and January 2007 in Brooklyn and Queens. Given this methodology, each index accurately captures the change in home prices by controlling for the varying composition of homes sold in a given month. Levels of the StreetEasy Price Indices reflect average values of homes on the market. Data on the sale of homes is sourced from the New York City Department of Finance. Full methodology here: http://streeteasy.com/blog/methodology-price-and-rent-indices/

(vii) The North Brooklyn submarket includes Greenpoint, East Williamsburg and Williamsburg.

(viii) The Central Queens submarket includes Corona, East Elmhurst, Elmhurst, Forest Hills, Glendale, Jackson Heights, Maspeth, Middle Village, North Corona, Rego Park, Ridgewood and Woodside.

(ix) The Northwest Queens submarket includes Astoria, Ditmars-Steinway, Long Island City and Sunnyside.

(x) The Northeast Queens submarket includes Alley Park, Auburndale, Bayside, Bellerose, Bowne Park, Briarwood, Clearview, College Point, Douglaston, Floral Park, Flushing, Fresh Meadows, Glen Oaks, Hillcrest, Kew Gardens, Kew Gardens Hills, Little Neck, New Hyde Park, Oakland Gardens, Pomonok, Queensboro Hill, Utopia and Whitestone.