In several cities across the United States, a single person can save enough to become homeowners almost as fast as couples, a study found.
Nationwide, singles earning a median income of $40,038 need eight years and five months to save up to be eligible for an affordable mortgage loan for a starter home worth $117,261. In comparison, couples earning a median income of $84,024 would only need two years and one month to save up for a starter home, according to a recent study from Point2 Homes.
"The reality is that saving for a home takes years. The harsher reality is that it can even take decades - particularly for singles buying on their own," Alexandra Ciuntu, author of the study, told Kiplinger. "The median starter home price has doubled over 20 years, [which extends the amount of time singles must save] by about 6 years compared to couples."
However, the study found that there are several cities where singles can save for homeownership nearly as fast as couples. These cities include:
1. Toledo, Ohio
Couples save in: 11 months
Singles save in: 1 year and 8 months
Difference in time to save for homeownership: 9 months
2. Detroit, Michigan
Couples save in: 1 year
Singles save in: 1 year and 9 months
Difference in time to save for homeownership: 10 months
3. St. Louis, Missouri
Couples save in: 11 months
Singles save in: 1 year and 10 months
Difference in time to save for homeownership: 11 months
4. Cleveland, Ohio
Couples save in: 1 year
Singles save in: 2 years
Difference in time to save for homeownership: 11 months
5. Memphis, Tennessee
Couples save in: 1 year and 3 months
Singles save in: 2 years and 2 months
Difference in time to save for homeownership: 12 months
6. Baltimore, Maryland
Couples save in: 1 year and 6 months
Singles save in: 2 years and 6 months
Difference in time to save for homeownership: 13 months
7. Kansas City, Missouri
Couples save in: 1 year and 6 months
Singles save in: 3 years
Difference in time to save for homeownership: 12 months
8. Oklahoma City, Oklahoma
Couples save in:1 year and 6 months
Singles save in: 3 years
Difference in time to save for homeownership: 1year and 6 months
For the study, Point2 calculated the mortgage amount an individual and a couple would be eligible for based on their incomes. The monthly mortgage payment basis used for the study would not exceed 30% of a household's earnings. The study also assumed that 20% of the income would go towards savings.
