Mesa, Gilbert most accessible in Valley for young homebuyers, study says

PHOENIX — Mesa and Gilbert are among the most accessible cities in the Valley for young homebuyers, according to a new study.

Real estate trends and news website Point2 conducted a study measuring the time it would take for people between the age of 15 and 24 – known as Gen Z – and millennials (age 25 to 44) to save for a down payment in the 100 most populous cities in the country.

The study took each city’s median household income, median home price, what a 20% down payment would be for the median home price and the years needed to meet that number assuming 17% of the household income is saved.

Gen Z would only need to save for eight years to pay for the down payment on a median-priced house in Mesa, priced at $247,683 with a median household income of $36,311.

Gilbert would be the next accessible Valley city for Gen Z at 8.1 years, followed by Phoenix and Chandler at 8.2 years, Glendale at nine years and finally Scottsdale rounding out the list at 11.7 years.

The most accessible Valley city for millennials is Gilbert as saving for 4.2 years with a median household income of $101,759 will meet the down payment of a median home price of $366,622.

Chandler follows at 4.3 years, Mesa at 4.8 years, Glendale and Phoenix at five years and Scottsdale at 6.7 years.

Scottsdale is not only the most prohibitive for young homebuyers, but for all homebuyers with a 20% down payment on a median-priced home costing $107,695. That puts Scottsdale at the No. 16 spot in the nation for cities with the largest down payment costs.

The study noted that while the national average savings rate went from 8% to 17% during the COVID-19 pandemic, home prices recorded accelerated growth and almost canceled homebuyers’ saving efforts.

Point2 also conducted a survey last fall and found out 26% of those in Gen Z planned to buy a home within the next couple of months, while that number rose to 43% for millennials.

Yet 44% of Gen Z prospective homebuyers and 47% of millennial prospective homebuyers only had $10,000 or less saved for a down payment, with 49% of Gen Z respondents and 40% of millennial respondents saying they are saving under 10% of their income for a down payment.

Los Angeles is the most prohibitive place in the country for young homebuyers, with Gen Z needing to save for 23.5 years for a down payment on a median home price. That number is still a high 12.2 years for millennials.

The most accessible city for both age groups is Detriot, at three years for Gen Z and two years for millennials.

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