Homeownership has long been a central part of the American Dream. But following the financial crisis of 2008, it’s safe to say that that dream has become largely out of reach for many With the rising cost of living — including increasing house prices, soaring rents, stagnant wage growth and mounting student loan debt — buying a home today is tremendously challenging, if not all but impossible in some areas. It’s no surprise then that more U.S. households today are renting than at any point in the last 50 years, with homeownership recently reaching its lowest point since 1967.
For many prospective homebuyers, down payments are considered to be the biggest impediment to homeownership. In fact, in a 2017 survey from the Urban Institute, 53% of renters said that a down payment was a primary obstacle keeping them from buying a home.
For any first-time buyer, saving for a down payment can seem impossible. But there are a number of ways to make saving up easier, putting homeownership within your reach. Here are a few tips for saving up now:
Be Informed About The Down Payment
As a real estate agent, I find that misinformation regarding down payments is prevalent. I often meet with prospective buyers who either drastically overestimate what they need for a down payment, or conversely, underestimate it.