With the price of homes continuing to climb, one study took a look at which cities had residents who were downsizing in an effort to save up a down payment.
RentCafe has delved into the research on the current housing market to reveal some interesting facts. In a survey of 3,700 participants, it has been found that 1 in 3 apartment renters are willing to downsize to a smaller unit to put money aside for a starter home.
RentCafe observed the housing markets and renter fees of 200 cities to see which ones could save up the fastest for a down payment on a starter home. NYC got the 8th place spot on this list despite it being home to some of the smallest apartments in the nation.
Studies show that by giving up a single bedroom’s worth of space, renters across the nation can save an average of $3,735 per year. New Yorkers struggle to afford spaces all across the city as the post-COVID-19 pandemic market takes over, but it is still possible to save money for a home.
Renters who have the privilege to downsize their space to a singular bedroom in New York City can save an average amount of $20,148 per year. This is RentCafe’s highest annual saving on their top 50 list.
If New Yorkers are able to put this money aside for approximately 2 years and 7 months they could consider putting a downpayment on the city’s starter homes, which cost around $531,117.
Right next to NYC, renters in Jersey City will have to save for approximately 4 years to afford a starter home in their area. Their annual savings with downsizing only amounts to an average of $10,128 per year.
To learn more about how you can save up for your first home, click here.
