The Affordability Crisis: What Happens When Millennials Can't Afford to Buy Homes? via Apartment List Rentonomics

Apartment List recently conducted a survey of more than 30,000 renters across the United States, asking questions about their plans for homeownership, affordability, and savings for a down payment. Our research indicates that the vast majority of millennial renters (79%) want to purchase a home, but that affordability is the biggest obstacle that they face. The issue is particularly acute on the west coast: more than 80% of millennials in Portland, Seattle, SF, LA, and San Diego say they cannot afford to buy.

Worryingly, we find that millennial renters in expensive metropolitan areas significantly underestimate the amount they need to save for a down payment, in many cases by 50% or more. Using data on starter home prices and millennials’ average savings rates currently, we estimate that many renters will need a decade or more before they can afford a 20% downpayment on a home.

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