Saving to buy a first home now takes twice as long : NPR

Key Points:

• Rising mortgage rates above 7% and soaring home prices have doubled the time needed for median-income renters to save for a down payment and closing costs, now taking 16 years on average, and 21 years for Black renters, according to a report from the Center for Responsible Lending.
• Inflation and increased living costs have outpaced income growth, making it harder for families to save, while closing costs have risen partly due to higher homeowners insurance; even middle-income households face a doubling of saving time to 12 years.
• The housing market divide has widened, with long-term homeowners benefiting from equity gains and low mortgage rates, while many face barriers to moving due to rising costs and limited housing supply, exacerbating affordability issues.
• The report highlights regional disparities, with saving times ranging from 11 years in Houston to 24 years in Los Angeles, and notes that rural areas face even greater affordability challenges due to insufficient housing construction.
• Many first-time buyers rely heavily on family assistance to cover down payments, as formal assistance programs are limited and often underfunded; the report calls for expanded aid and zoning reforms to increase the supply of affordable starter homes.