US Minimum Wage Workers Must Work More Than 20 Years To Afford a Median-Priced Home: Report

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Minimum-wage workers in the United States would need to work more than 20 years of 40-hour weeks to afford a median-priced home.

That is according to a report from the personal finance website BadCredit.org. In the analysis, the average first-time homebuyer makes an estimated 8% down payment on a home. The study calculated the number of years it would take for a minimum wage worker using an assumption that an individual would save 10% of their income and work 40-hour weeks for 52 weeks a year. Additionally, the study analyzed the median values for single-family homes and condominiums from May 2023 to April 2024 using data from Zillow.

How Long Would Minimum Wage Workers Need To Save Up for Down Payment

At a national level, the average minimum-wage worker would need 23.1 years to save an 8% down payment for a median-priced home of $349,000. That is if they earn a minimum wage of $7.25 per hour.

The time it takes for minimum-wage workers to save for a downpayment varies depending on the state.

Below are the 10 states where Americans earning minimum wage would need the longest to save up for a down payment.

Utah

Minimum Hourly Wage: $7.25

Median Home Price: $514,791

Years Needed To Save an 8% Down Payment: 34.10

New Hampshire

Minimum Hourly Wage: $7.25

Median Home Price: $451,363

Years Needed To Save an 8% Down Payment: 29.90

Idaho

Minimum Hourly Wage: $7.25

Median Home Price: $447,178

Years Needed To Save an 8% Down Payment: 29.70

Hawaii

Minimum Hourly Wage: $14.00

Median Home Price: $853,456

Years Needed To Save an 8% Down Payment: 29.30

California

Minimum Hourly Wage: $16.00

Median Home Price: $765,222

Years Needed To Save an 8% Down Payment: 23.00

Wyoming

Minimum Hourly Wage: $7.25

Median Home Price: $337,344

Years Needed To Save an 8% Down Payment: 22.40

North Carolina

Minimum Hourly Wage: $7.25

Median Home Price: $323,813

Years Needed To Save an 8% Down Payment: 21.50

Georgia

Minimum Hourly Wage: $7.25

Median Home Price: $321,562

Years Needed To Save an 8% Down Payment: 21.30

Montana

Minimum Hourly Wage: $10.30

Median Home Price: $447,443

Years Needed To Save an 8% Down Payment: 20.90

Tennessee

Minimum Hourly Wage: $7.25

Median Home Price: $312,664

Years Needed To Save an 8% Down Payment: 20.70

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