10 Cities Where Buying a Home Takes 25 or More Years To Beat Renting
Buying a home is often viewed as a path to long-term wealth, but in some U.S. housing markets, it can take decades for ownership to become financially advantageous.
According to a Zillow report, the typical U.S. household needs 8.5 years to save a 20% down payment on a median-priced home and another 6.2 years before buying becomes cheaper than renting. That's nearly 15 years to reach a break-even point.
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In several high-cost coastal cities, however, the timeline stretches far longer. In San Jose, California, for example, it takes more than 49 years from the start of saving for a down payment to reach the break-even point on a home purchase.
Using Zillow's estimates for down payment savings timelines and homeownership break-even periods, these are the 10 cities where buyers face the longest wait before purchasing becomes financially worthwhile.
1. San Jose, California
Years to save a 20% down payment: 19.2
Years to stay to break even: 30
Total years: 49.2
2. San Francisco
Years to save a 20% down payment: 16.9
Years to stay to break even: 30
Total years: 46.9
3. San Diego
Years to save a 20% down payment: 17
Years to stay to break even: 23.4
Total years: 40.4
4. Los Angeles
Years to save a 20% down payment: 19.8
Years to stay to break even: 17.9
Total years: 37.7
5. Seattle
Years to save a 20% down payment: 13
Years to stay to break even: 18.4
Total years: 31.4
6. New York
Years to save a 20% down payment: 14.3
Years to stay to break even: 15.1
Total years: 29.4
7. Boston
Years to save a 20% down payment: 12.3
Years to stay to break even: 15.1
Total years: 27.4
8. Portland, Oregon
Years to save a 20% down payment: 10.6
Years to stay to break even: 16.3
Total years: 26.9
9. Austin, Texas
Years to save a 20% down payment: 8.1
Years to stay to break even: 18.1
Total years: 26.2
10. Sacramento, California
Years to save a 20% down payment: 11.2
Years to stay to break even: 14.4
Total years: 25.6
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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