Housing Affordability Study Shows Renters Face Longer Timeline to Homeownership

A Center for Responsible Lending model estimates that a U.S. renter household with median income would require 16 years to save for starter-home closing cash, which is double the 2019 timeline. The analysis, which uses a 2026 benchmark home price of $335,574, suggests that a typical Black renter household would require 21 years to save for a home purchase.

The study indicates that rising home prices and required savings have substantially increased the barrier to entry for first-time buyers. The model calculates that a median renter household would need $24,363 at closing, including a 3.5% down payment and closing costs.