Saving for a Metro Detroit mortgage
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It takes Metro Detroiters an average of 6.7 years to save up for a 10% down payment on the typical home, Zillow data shows.
- That accounts for saving 5% of our area's median household income every month.
- The U.S. average is 8.9 years.
Why it matters: Affordability could be a "major driver of cross-country moves" as buyers seek a lifestyle within their means, Zillow economists say.
By the numbers: In our region, the average monthly payment burden for new homeowners who paid 10% down is 28.5% of income, per Zillow.
- That's up from 10% in 2012 and 23% in 2004. We've now surpassed the peak from before the Great Recession hit.
Between the lines: The share of first-time buyers in the U.S. has shrunk to a record low as inventory and affordability issues persist, according to the National Association of Realtors.
- First-timers are also waiting longer to buy; the median first-time buyer age jumped from 33 years to 36 from 2021 to 2022.
Of note: The majority of Americans believe it's the worst time ever to buy a house.
- And many would-be-buyers are saddled with debt, including student loans, car loans and credit card debt.
The intrigue: Nearly 42% of metro Detroit home sales were made in cash in April, as the share of U.S. cash buyers reached a nine-year high, new Redfin data shows.