Solo homeownership is on the rise, and while it may be financially challenging to achieve, it’s not impossible. Saving for the traditional single-family detached home with one income, particularly as a first-time home buyer, can be a massive hurdle. But saving for a condo apartment, often thousands of dollars cheaper, substantially cuts down the savings timeline.
With an average savings account balance of $20,540, as reported by the Federal Reserve, individuals under 35 already have a notable portion of a condo down payment saved. So assuming solo condo buyers can use the full $20,540 towards their down payment, Zoocasa calculated how long it would take for buyers with a median income to save for a median-priced condo across various U.S. cities. The calculations also assume that buyers are saving 10% of their annual income.
Saving for a Condo Down Payment in Under 5 Years? It’s Possible in These Cities
With a savings account balance of $20,540, prospective condo buyers in Winston-Salem, Cleveland, San Antonio, and Tallahassee have already saved more than half of what they need for a 20% down payment. Houston condo buyers are $24,000 short of the 20% down payment but can save the remaining portion in under five years with one income. Winston-Salem requires the least amount of time, with just 3.4 years of saving needed to reach the 20% down payment of $34,380.
Even despite the median income in Winston-Salem being low at $40,233, a person with a solo income can still attain homeownership. This is not the case in many higher-income cities.
Among the 20 cities with the shortest condo down payment savings timeline, half have a median income below the national median income of $47,090. When it comes to affordability, condo prices play a huge role in aiding or limiting access to housing.
For example, a prospective buyer in San Antonio, where the median condo price is $184,000, could save enough for a down payment before turning 30 if they start at age 25. In contrast, if a prospective buyer in Austin, where the median condo price is double that of San Antonio, started saving for a down payment at 25, they wouldn’t have enough saved until they were 34. This is particularly noteworthy because the median non-family income in Austin is nearly $20,000 higher than in San Antonio.
Solo condo buyers who do not start saving for a down payment until the age of 30 can still achieve homeownership before age 36 in 13 cities, including Cincinnati, Indianapolis, New Orleans, and Colorado Springs. This is encouraging news for young millennials and Gen Z who suffer from “money dysmorphia” and feel they are financially behind their peers, showing that it’s never too late or unthinkable to become a homeowner and start building equity.
In America’s Most Expensive Cities, Even a Condo is Out of Reach for Solo Buyers
The median condo price is above $400,000 in nine of the 13 cities that require over 10 years to save for a condo down payment. In these markets, which include Boston, Seattle, and Los Angeles, the median condo price is significantly higher than the national median condo price of $359,200.
It will take a solo buyer in San Francisco the longest time to save (19.2 years), followed by Los Angeles (18.5 years) and San Diego (15.8 years). These long timelines likely contribute to the growing number of young people who feel they will never own a home. According to a CNN poll conducted last year, 54% of renters think it is unlikely they will ever be able to afford a home despite the majority wanting to buy one someday.
Renters who strongly desire to live in high-cost cities like Los Angeles may need to get creative with their homeownership plans. Investing in a condo in a more affordable city, like Houston, cuts nearly $100,000 off the down payment and allows you to start earning rental income on top of building equity. Strategically investing in lower-cost cities allows your dollar to go further and can help you climb the property ladder faster in your desired city.
Comparing Prices: Condos vs. Single-Family Homes
While many people envision their first home as a detached property, condos offer a vastly more attainable entry point to the housing market. As a solo buyer, condos are much easier to manage alone than single-family homes, which require yard work, driveway maintenance, and typically more cleaning. A person living alone might also feel more secure living in a building with a 24/7 concierge or security.
In many cases, the price difference between a single-family home and a condo is over $100,000. Even in already affordable cities, the price difference is staggering. In Cleveland, which has one of the lowest home prices in the country, the median condo price of $179,000 is $42,900 less than the median single-family home price. Condo buyers in in-demand cities like Chicago, Atlanta, and Philadelphia can save over $50,000 by opting to purchase a condo instead of a single-family home. In Miami, New York, and Portland, condo buyers save a whopping $200,000 by choosing a condo over a single-family home.
When choosing where to invest your money, it’s crucial to consider local housing market conditions and your personal risk tolerance. Working with a qualified real estate agent can help you meet your real estate goals and uncover new growth opportunities.
Looking for a condo in one of these cities? Our agents can help! Give us a call today to speak with an agent in your area and start planning your next real estate endeavor.
Methodology:
Calculations are based on the assumption that solo buyers are saving 10% of their annual median income and possess an average savings balance of $20,540, which is the typical savings account balance for individuals under 35, as reported by the Federal Reserve.
Median incomes were sourced from the U.S. Census Bureau for non-family households, which are defined as a householder living alone (a one-person household) or where the householder shares the home exclusively with people to whom he/she is not related.
Median condo and single-family home prices were sourced from the National Association of Realtors using Q4 2024 data. For Denver, Detroit, Orlando, Raleigh, Sacramento, San Antonio, Seattle, and St. Louis, condo data was obtained from local real estate boards.
