Buying a home is on the horizon for many San Antonio millennials, but it may be a while before they can do so.
As part of an annual survey, Apartment List questioned millennial renters across the country about their plans for homeownership. The San Antonio metro area lines up with the national trend: A lot of young people want to buy a place, but they can't afford to right now, and they may not be able to any time soon.
Eighty-one percent of metro-area millennials plan to buy a home, but most say they need at least three years to prepare. Affordability is cited as the main reason for holding off, and local millennials aren't underestimating what it will take to buy a home. Survey respondents think they need $16,798 for a down payment, and data from Trulia says they're correct. First-time buyers should have $16,910 in the bank, 20 percent of the median price of a San Antonio-area starter home.
Respondents report having $2,667 in savings, with plans to contribute $187 each month. Based on the savings rate and down payment requirements, they'll need to save for almost six years to buy a home.
Apartment List says there's a disconnect between millennials' homeownership dreams and reality. "Many do not seem to realize their financial predicament — 3 in 4 renters plan to purchase a home within the next five years, but their savings trajectories suggest that they may need a decade or more to afford it," says Apartment List.
The delay in first-time home purchases is part of what Apartment List calls an ongoing affordability crisis that is shaping the future of the housing market.
"Some may choose to delay settling down and having children, while others will migrate to family-friendly cities on the interior of the country. Given the size of the millennial population, either scenario will have a profound impact on homeownership and renting in our society."
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