Oct 22, 2023 - Economy

New homeowners won’t see a profit for over a decade

Data: Zillow; Note: Calculations assume typical increases in home values, 3% closing costs paid at purchase and 1% home maintenance fees, 6% closing costs, and 6% agent fees paid at sale; Chart: Axios Visuals

Get comfy, homeowners: It can take up to 13.5 years to break even on your purchase, per Zillow data exclusively shared with Axios.

Why it matters: You'll have to stay in your house for more than a decade before you can sell and make a profit.

Context: Historically, experts have said you need to stay in your home at least five years to break even. But with mortgage rates inching toward 8%, new homeowners will need to stay put longer to avoid going underwater.

Go deeper: The problem with America's high homeownership rate

Go deeper