Saving for a downpayment is a challenge for most of us but for those with student debt hitting that target will be delayed by an average of more than 4 years
Saving for a downpayment is a challenge for most of us but for those with student debt hitting that target will be delayed by an average of more than 4 years.
A report published today (Thursday) by Apartment List shows that it takes on average 7.6 years for a college grad with no debt to save a 20% downpayment but for those with debt it’s 11.9 years.
However, for those without a college degree it takes even longer due to typically lower wages – 16.7 years on average.
The average college graduate without student loans has $13,900 saved for a down payment, compared to $6,500 for college grads with debt, and just $3,400 for those without a college degree
The study shows that millennials (the largest generation in the US) have increased their student debt burden by 70% on average in the 10 years from 2005 to 2015.
That’s because while incomes have risen 25% since 1980, the cost of tuition has risen a staggering 160% and home prices have soared 60%.
These metros mean the longest wait to buy
Apartment List’s analysis found that in some metros, millennials without a college degree would have to save for 20 years or more to afford a 20% downpayment.
These include Austin, San Diego, San Francisco, Los Angeles and Denver with those in San Francisco having a 27 year wait to buy a home.
A report published today (Thursday) by Apartment List shows that it takes on average 7.6 years for a college grad with no debt to save a 20% downpayment but for those with debt it’s 11.9 years.
However, for those without a college degree it takes even longer due to typically lower wages – 16.7 years on average.
The average college graduate without student loans has $13,900 saved for a down payment, compared to $6,500 for college grads with debt, and just $3,400 for those without a college degree
The study shows that millennials (the largest generation in the US) have increased their student debt burden by 70% on average in the 10 years from 2005 to 2015.
That’s because while incomes have risen 25% since 1980, the cost of tuition has risen a staggering 160% and home prices have soared 60%.
These metros mean the longest wait to buy
Apartment List’s analysis found that in some metros, millennials without a college degree would have to save for 20 years or more to afford a 20% downpayment.
These include Austin, San Diego, San Francisco, Los Angeles and Denver with those in San Francisco having a 27 year wait to buy a home.
