Mar 21, 2024 - News

Despite gap, Indianapolis relatively affordable for single homeowners

Years needed for <span style='text-decoration: underline 3px solid #6533ff;'>couples</span> and <span style='text-decoration: underline 3px solid #ff4e1f;'>individuals</span> to afford a starter home down payment
Data: Point2; Note: Down payment calculated as the minimum amount needed to have an affordable mortgage (<30% of monthly income) for the median-priced starter home in each market, or at least 20% down; Chart: Axios Visuals

It takes single people in Indianapolis more than twice as long to save for a starter home than couples, per a recent Point2 study.

Why it matters: While being single can make home ownership feel out of reach, Indianapolis is still one of the nation's more affordable metro areas.

The big picture: It takes single people four times longer than couples to save for a starter home in the U.S., per Point2. In some cases, like in California, saving for a house would take people an entire lifetime.

Zoom in: Indy has the 12th smallest difference in years needed to save up for a home for singles compared to couples among the 100 cities analyzed by Point2.

  • Topping that list are Toledo, Detroit, St. Louis, and Cleveland.

By the numbers: The median income for Indy singles is $37,657, taking them an average of 3.5 years to save for a down payment, compared to $80,265 and 1.6 years for couples, per Point2 data.

  • The study assumes people save 20% of their income for a down payment.
  • A starter home is defined as the median price of the cheaper third of listings in the region.

Between the lines: The timeline for comfortably buying a house largely depends on where you live.

  • On the West Coast, the study finds that average-income singles need decades longer to save for a starter home.
  • In the Midwest, being partnered doesn't give you a huge leg up.
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