One of the biggest barriers to homeownership for first-time home buyers has been saving for a down payment. But young adults who moved back home during the pandemic—and kept a job—are finding that homeownership may be within reach, according to a new report from realtor.com®.
Eleven months of living at home and saving on rent amounts to about $17,000 in savings—or a 5% down payment that could go toward buying a median-priced home in the U.S., according to the study.
“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,” says Danielle Hale, realtor.com®’s chief economist. “For those who have been able to channel their would-be rent into savings, the pandemic’s silver lining could be becoming a homeowner soon than they otherwise would have.”
Realtor.com® researchers analyzed listing and rental data for the U.S. and the nation’s 20 largest metros in December 2020 for the study. Researchers found that some metros offered faster ways to save by forgoing rent than others. Take a look at the metro breakdown below.