Key Highlights

  • New survey by Point2, real estate research site, indicates huge gap between Millennial dreams of homeownership and financial reality
  • 74% Millennials want to own home but 88% haven’t enough savings to make average down payment

Even in the midst of our pandemic economy and an upended real estate market with historically fewer homes for sale and escalating, highly competitive home prices, homeownership continues to be seen as a crucial component of achieving the American Dream.

Are You Attending This Exclusive FREE Event?: This Webinar Shows You The 12 Secrets Of Real Millionaire Agents. Stop Struggling. You Can FINALLY Laugh At Your Money Worries – If You Follow This Simple Plan. Learn How To Generate 100’s of Motivated Leads Without Coming Off As A Pushy Salesperson and Losing Your Soul. Learn Now How To Become One of the 1000s of Agents Making HUGE Money Who Never Thought They Could. YES, I Want To Attend The FREE Webinar! <——Click To Register
P.S. Free Webinar, Limited Space. Less Than 300 Spots Still Available.

A recent survey by Point2, a real estate search site, indicates that 74% of Millennials (ages 25 to 40) want to buy a home within a year. Similarly, 88% of Millennials do NOT have enough money saved to make an average down payment.

Clearly, there is a huge discrepancy between the dreams of homeownership and the financial reality of homeownership. Some 40% of Millennials estimate needing $10,000 or less in order to make a down payment on a home. In fact, the only city in America where $10,000 would be enough for a standard 20% down payment on a median-priced home is Detroit. A standard down payment on a home is San Francisco is 20X that of Detroit or $218,000.   (The nation-wide average down payment on a house is approximately $62,000.)

So, what do Millennials with growing families and increasing housing needs do to both become homeowners and make their American Dream come true?   Save more than the historical 8% of their household income. (According to the US Commerce Department, average savings rate jumped to nearly 34% of household income in April but then dropped to about 14% by August.)

Here are Point2’s top and bottom cities of largest US cities ranked by median home price and how long it would take Millennials to save for that standard 20% down Payment:

Least Expensive Cities 

         Aver. HH            Median              20% DP    Years of

Income              Home Price                         Saving @ 8%



$30,238             $49,396             $9,879               4.1


$33,499             $74,040             $14,808             5.5


$40,564             $86,362             $17,921             5.3


$39,513             $89,605             $17,921             5.7


$39,883             $104,845           $20,969             6.6

Fort Wayne

$52,758             $119,545           $23,909             5.7


$61,164             $125,706           $25,141             5.1


$45,481             $127,706           $25,509             7.0


$47,457             $132,840           $26,568             7.0

El Paso

$51,508             $133,921           $26,784             6.5

Most Expensive Cities

San Francisco

$148,699           $1,091,146        $218,229           18.3

Fremont CA

$148,804           $933,662           $186,732           15.7

Irvine CA

$109,305           $861,567           $172,313           19.7

San Jose CA

$125,382           $857,244           $171,449           17.1

Arlington VA

$121,933           $723,539           $144,708           14.8

Oakland CA

$80,130             $678,575           $135,715           21.2


$102,724           $654,147           $130,829           15.9

Los Angeles

$64,724             $648,202           $129,640           25.0

New York

$76,877             $616,641           $123,328           20.1

San Diego

$83,174             $615,127           $123,025           18.5


Thanks to Point2.

Also read: National Rent Index Down -0.3% Since Pandemic Beginnings, Median Home Prices Up in 96% of Metros in Q2 2020, Mortgage Delinquencies Expected To Be Above “Normal” Until 2022

Claim Your FREE Real Estate Treasure Map!