This is obviously a regional phenomena.
In the bay area, a small starter home is $2 million.
In Seattle, a small starter home in a half-decent area is $700,000
In Portland, a small starter home in a half-decent area is $500,000
The price to income ratio is way off in any half-desirable west coast city or suburb, whether you save for the downpayment or not doesn't matter if the average income won't support the payment. It's also going to take quite some time for most people to save for a down payment at those house prices, unless they get a boost from options, RSUs, maybe the Bank of Rich Mom & Dad, etc.
Meanwhile in Greenbay Wisconsin or any other midwestern city, starter homes are $120,000 or so. Go to the south, and the costs are even less.
In the bay area, a small starter home is $2 million.
In Seattle, a small starter home in a half-decent area is $700,000
In Portland, a small starter home in a half-decent area is $500,000
The price to income ratio is way off in any half-desirable west coast city or suburb, whether you save for the downpayment or not doesn't matter if the average income won't support the payment. It's also going to take quite some time for most people to save for a down payment at those house prices, unless they get a boost from options, RSUs, maybe the Bank of Rich Mom & Dad, etc.
Meanwhile in Greenbay Wisconsin or any other midwestern city, starter homes are $120,000 or so. Go to the south, and the costs are even less.