For Singles, 11 Years for a Down Payment

Saving for a down payment on the median U.S home takes six years longer for a single person than a couple, according to a new Zillow analysis–a factor that could discourage some from even trying.

A single homebuyer would need to save for nearly 11 years to reach a 20 percent down payment on the typical U.S. home, Zillow said, assuming they saved 10 percent of their income every year. However, for married or partnered couples, it would take less than five years. In San Jose, Calif., a single buyer would need more than 30 years to save for a down payment–longer than the lifespan of a typical home loan.

Zillow senior economist Aaron Terrazas said single buyers typically have a smaller budget than couples, which leaves them with fewer homes to choose from and limits them to the most in-demand portion of the housing stock. The number of homes for sale is limited across the country, down nearly 11 percent over the past year, and nearly 18 percent for the least expensive homes. A single person could afford to buy less than half (45 percent) of the U.S. housing stock, compared to a married or partnered couple, who could afford 82 percent of all homes.

“Nearly two-thirds of Americans agree that buying a home is a central part of living the American Dream, but for unmarried or un-partnered Americans, that dream is increasingly out of reach,” Terrazas said. “Single buyers typically have more limited budgets, which means they are likely competing for lower-priced homes that are in high demand. Having two incomes allows buyers to compete in higher priced tiers where competition is not as stiff.”

The difference between what a single person could afford compared to a couple is greatest in Portland, Ore., and Sacramento, Calif.. In Portland, 73 percent of homes are affordable to a couple, but only 6 percent are affordable to a single buyer. For Sacramento buyers, a couple could afford 75 percent of homes while a single homebuyer could afford 8 percent of homes.

Zillow said single buyers have it easiest in Indianapolis, where saving for a down payment takes less than eight years, and they can afford the highest share of homes among the largest American housing markets.