Valley singles need to save 19 more years than couples to afford a starter home
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It takes singles more than six times as long as couples to save enough money for a down payment on a house in Phoenix, per a recent Point2 study.
Why it matters: The Valley used to be known for the abundant and affordable housing that drove our explosive population growth for generations, but it now faces a massive shortfall in housing units, and that has driven up prices for single-family homes.
By the numbers: On average it takes a couple in Phoenix 3.7 years to save for a down payment.
- But if you're single, it'll take an average of 22.7 years, a 19-year gap.
- The gap is bigger in other parts of the Valley, such as Glendale (26 years), Gilbert (23.4) and Mesa (21.6)
- The study assumes people are saving 20% of their income for a downpayment.
The big picture: Phoenix's gap is well above the national average of 6.3 years.
Zoom in: The median income for singles is just under $43,000 in Phoenix, compared with over $86,000 for couples, per Point2 data.
Between the lines: Starter homes cost an average of about $316,000 in Phoenix, but prices are higher in some parts of the Valley and up to $453,000 in Scottsdale.
The fine print: A starter home is defined as the median price of the cheaper third of listings in the region.
- This calculation assumes a 6.6% mortgage rate. Current mortgage rates are hovering above 7%.
Zoom out: In parts of California, it would take the average individual a lifetime to save enough money for a down payment and two to three decades for couples.
- In other places, such as parts of the Midwest, it takes only a few years for singles to save the cash.