It Takes 17.3 Years to Save for a Down Payment in Maine, 13th Longest in the Country

Over the past 4 years, home affordability in the U.S. has rapidly deteriorated. A combination of home price growth, increases in mortgage rates, and income gains that have failed to keep pace has made it significantly harder for Americans to enter the housing market. What was once a challenge in many markets has become largely an impossibility (without some form of assistance) as borrowing power has declined and home prices continue to grow.

This analysis by Upgraded Points, a company that provides advice on credit cards rewards programs and other financial products, examines how long it would take the typical household to save for a home in cities across the U.S., based on current home prices, mortgage rates, incomes, and other housing-related costs. Buyers are assumed to earn the median income in their area, spend no more than 30% of it on housing, and purchase a median-priced home. The down payment is calculated as the gap between the median home price and the maximum loan they can afford at today’s rates. To save that amount, they are assumed to invest 10% of their income, earning a 5% annual return.