PHOENIX – If you are single and thinking about purchasing a new home in the Phoenix market, a new study revealed that it may take more time than you think.
Zillow, one of the nation’s largest real estate marketplaces, analyzed the value of homes and income data from census in order to estimate the length of time it would take for both a single person and married couple to save a 20 percent down payment for a home.
According to the data, a single homebuyer in the Phoenix area would have to save 10 percent of their yearly income for 11.7 years to afford a down payment of that size. For a married couple, it takes 5.7 years.
“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,” said Zillow senior economist Aaron Terrazas.
“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.”
Single homebuyers in Phoenix typically have an income of $38,000 per year, while married couples more than double the income at $77,500, according to the study.
Couples have the advantage of being able to afford a home with an average value of $393,648, which is about 84 percent of the homes in Phoenix.
The market for single buyers shrinks considerably, with the affordable price declining to $194,090, or about 38 percent of the homes.
However, single in Phoenix have it better than those in other cities in the U.S.
The study revealed that single homebuyers in San Jose, Calif. would have to save for just over 30 years in order to afford a down payment for a home, the longest duration of time in the nation.