According to a recent report, prospective homeowners in Miami face a daunting challenge. Based on saving 5% of the median household income each month, it takes an average of 13 years to save up for a 10% down payment on the area’s typical home, significantly higher than the national average of 8.9 years.
First-time buyers are particularly affected, as the share of such buyers in the U.S. has hit a record low due to inventory shortages and affordability constraints. In fact, many of them are burdened by debts, such as student loans, car loans, and credit card debt, making homeownership a challenging goal to achieve. A tangible outcome is the median age of first-time buyers increased from 33 to 36 between 2021 and 2022.
Additionally, homebuyers now opt for smaller down payments than in previous years. While this may enable more immediate entry into the market, it could lead to higher mortgage payments and financial risks down the line.
