Report: Rent Savings Mean Down Payment Options

There may be an upside for the young adults who were forced to move back home with their parents during the pandemic: Homeownership may be within reach sooner than they think.

A new report released Thursday by found that saving the one-bedroom median rent of $1,533 means that it would take 11 months to save $17,000 – enough for a 5 percent down payment on a $340,000 home, the median-priced home in the United States.

“Although many members of the millennial and Gen Z generations were forced to move home because they lost their jobs in 2020, others chose to forgo their rental because they had the opportunity to work remotely and preferred to wait out the pandemic with family,” Chief Economist Danielle Hale said. “For those who have been able to channel their would-be rent into savings, the pandemic’s silver lining could be becoming a homeowner sooner than they otherwise would have.”

The report found it would take an average of 15 months to save for a 5 percent down payment in the 20 largest metropolitan areas – with the fastest in Chicago and Philadelphia and longest in California (Los Angeles, San Francisco and San Diego).

Here is a look at savings times by metropolitan area:

Months Saving for
Atlanta-Sandy Springs-Roswell, Ga.$1,310$350,000$17,50013
Boston-Cambridge-Newton, Mass.-N.H$2,109$649,000$32,45015
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.$1,521$327,000$16,35011
Dallas-Fort Worth-Arlington, Texas$1,125$354,000$17,70016
Denver-Aurora-Lakewood, Colo.$1,495$533,000$26,65018
Detroit-Warren-Dearborn, Mich.$970$252,000$12,60013
Houston-The Woodlands-Sugar Land, Texas$1,060$330,000$16,50016
Los Angeles-Long Beach-Anaheim, Calif.$2,250$999,000$49,95022
Miami-Fort Lauderdale-West Palm Beach, Fla.$1,691$409,000$20,45012
Minneapolis-St. Paul-Bloomington, Minn.-Wis.$1,358$344,000$17,20013
New York-Newark-Jersey City, N.Y.-N.J.-Pa.$2,345$627,000$31,35013
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md$1,495$327,000$16,35011
Phoenix-Mesa-Scottsdale, Ariz.$1,195$413,000$20,65017
Riverside-San Bernardino-Ontario, Calif.$1,610$475,000$23,75015
San Diego-Carlsbad, Calif.$2,000$797,000$39,85020
San Francisco-Oakland-Hayward, Calif.$2,414$995,000$49,75021
Seattle-Tacoma-Bellevue, Wash.$1,657$628,000$31,40019
St. Louis, Mo.-Ill.$1,035$232,000$11,60011
Tampa-St. Petersburg-Clearwater, Fla.$1,225$300,000$15,00012
Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.$1,767$497,000$24,85014