Written by The Business Journal Staff
Fresnoâ€™s Generation Z residents will need to start saving now â€” and saving a lot â€” if they want to buy a home by age 30.
According to The Home of Home Search, a recent analysis released by realtor.com, the median cost of a Fresno home is projected to be $454,630 by 2031, when todayâ€™s 18-year-olds reach 30. That means that in order afford a 5 percent down payment, Generation Z will have to start saving $225 a month, and $357 for 10 percent. At 20 percent, this number jumps up $619 per month.
â€œChoosing to live in one of the USâ€™s larger and more expensive metros â€” especially on the West Coastâ€”is going to make homeownership a difficult task, but that doesnâ€™t mean Gen Z should give up on their dreams,â€ said Danielle Hale, realtor.comâ€™s chief economist. â€œThe most important thing they can do is start saving as much as possible early on and let compound interest do the heavy lifting for them,â€
These costs put Fresno at a higher home price than the national average of $386,310. However, this is still much better than the metro areas of San Jose-Sunnyvale-Santa Clara, or San Francisco-Oakland-Hayward, which come in at over $2.4 million and $1.8 million respectively. To own a home in San Jose by age 30, a buyer born in 1991 would have to put aside over $1,961 monthly to make the 10 percent down payment.
In contrast, the cheapest homes of any metro in the country can be found in the future in Youngstown-Warren-Boardman, Ohio-Pennsylvania. Homes here are only expected to cost $136,000.