Born between the mid-1990s and early 2000s, many Americans born into Generation Z have officially hit their early 20s. And if they want to be able to afford a house by the age of 30, they need to start saving now.
According to recent data from Realtor.com, Generation Z would need to save up to $304 a month starting right now if they want to buy a home by the age of 30.
How much do I need to save per month?
Realtor.com projects that the average house will cost just over $386,000 by 2031 when the youngest members of Generation Z reach the age of 30. Granted, the youngest Gen Z-ers are currently age seven, and the oldest Gen Z-ers are currently age 24.
That said, the average cost of a house in the U.S. as of right now is $200,000. To make a 10% down payment on a $200,000 house complete with closing costs, the oldest Gen Z-ers would need to save up $278 a month over the course of the next six years.
But the location also has an impact on the average cost of a house. For instance, the average cost of a house in the city center of San Francisco is $1.62 million. But the average cost of a house in McAllen Texas is $111,000.
How can I save up for a down payment?
To save up for a down payment, you need to make sure that you have room for savings. You can’t save up if you’re living paycheck to paycheck.
Apply for jobs that pay salaries higher than your student loan debt and rent apartments that are one-third of your current salary. This will help to make sure you have enough in savings to apply for a good mortgage when the time comes to buy a house.
Looking for mortgage loan options?
In 2017, the average investor bought a median-priced property of $155,000. That’s a $12,000 increase from 2015. The good news is there are different mortgage loan options for you to choose from so you can afford a median-priced property.
Megastar Financial are the mortgage lenders Redding CA homeowners trust to find the best possible mortgage loan options. If you’re looking for conventional mortgage refinancing, an FHA loan, or other investment loans, Megastar Financial has what you need. To learn more or to speak with one of the best mortgage lenders Redding CA has to offer, contact Megastar Financial today.