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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