According to a report by Private Mortgage Insurance, it takes an average of 20 years to save the necessary 20% to purchase a home, with California leading the nation at 40 years.
Hawaii followed at 35 years, which is an increase of one year from last year, and it takes 33 years to save 20% in the District of Columbia. Iowa, Kentucky, and Pennsylvania all report that it takes 12 years to save 20%—the shortest wait time in the nation.
Private Mortgage Insurance states these calculations are based on median sales price or median listing price for single-family homes in 2018, unless otherwise indicated.
The report states that it would take a firefighter, making an average salary of $49,620, about 26 years to save 20%. Middle school teachers making $58,600 take roughly 22 years and nurses making $71,730 take 18 years. Veterinarians making $93,830 have to wait just 14 years to save 20%.
African-American buyers have the longest wait time, averaging 32 years to save 20%. It takes Hispanic approximately 25 years to save 20% and 20 years for caucassians. Asians have the shortest wait time at 16 years.
The National Association of Home Builders (NAHB) announced last month that while 53% of buyers are actively seeking a home in Q1 2019, 46% of those searching state they are having issues finding an affordable home.
The NAHB also reported that not being able to find a home in their desired neighborhood was a barrier for 40% of potential buyers, and 38% said they couldn’t find a home with features they want.
According to the report, the share of buyers who consider high prices the biggest hurdle fell 5 points when compared to 2018. The amount of people who couldn’t find a home in the proper neighborhood fell 2 points and there was no change for people who couldn’t find home with features they want.