JACKSONVILLE, Fla. – A new report is putting numbers to a problem many families in Northeast Florida already feel: Buying a home is getting further out of reach.
As home prices continue to climb across Florida, a new analysis suggests it could take the typical household nearly a generation to save for a modest down payment.
New data from ConsumerAffairs estimates that Floridians would need 17 years to save enough for a 10% down payment on a median-priced home. Researchers say that’s the 12th-longest timeline in the country.
“It used to be 20% down, but just to get to 10% down, they’re gonna have to save 17 years in Florida. That’s way too long,” said Jason Kindler, president of First Coast Mortgage Funding.
The findings come as the state’s median home price reaches $404,300, putting a 10% down payment at $40,430.
To reach that number, ConsumerAffairs calculated what an average household could save annually after taxes and covering essential expenses:
- Median household income in Florida: $77,735
- Estimated taxes: $15,309, leaving $62,426
- Essential yearly costs — including housing, food, health care, transportation, gas, clothing and insurance: $37,948
- Remaining disposable income: $24,478
Analysts then assumed a resident saves 10% of that disposable income, or $2,448 per year. At that rate, it would take 17 years to reach the required down payment.
In 17 years, you could raise a teenager. To give some perspective, 17 years ago, the most popular phone was a Nokia, and “Keeping Up with the Kardashians” and “Breaking Bad” had just premiered.
ConsumerAffairs calls the 10% saving approach “fractional saving” — a method meant to reflect the reality that most Americans cannot put all of their remaining income toward housing costs.
If Floridians were able to save their entire disposable income each year, the report notes, they could reach a down payment in just two years. But with the cost of everyday necessities rising, researchers say that scenario is far from realistic for most households.
The data adds to growing concerns about housing affordability statewide, where wages have struggled to keep pace with record-setting home prices.
Mortgage lender Kindler said that despite new programs and creative loan options, affordability is still the biggest barrier for the average buyer, especially with rising costs for basics -- including groceries, transportation and insurance.
“It’s still not affordable, especially in Northeast Florida, like for most families to afford a house,” Kindler said. “There’s got to be better ways.”
So what’s the fix? Kindler believes lower interest rates are the single biggest factor.
“We’ve gotta get lower rates, right? And the economy tells us that that should happen," Kindler said.
The Federal Reserve is expected to make its next interest rate decision next week on Dec. 10. Many are anticipating a 0.25% cut.
In the meantime, Kindler said you can also save toward a more realistic goal.
“You don’t have to have 10%. You don’t have to have 5% sometimes, right? If you’re a first-time home buyer, you could look at down payment assistance. And if it makes sense, my opinion is let’s get into the house, right? Start building equity and then potentially refinance it at a later date,” Kindler explained.
Now, we want to hear from you! How long have you been saving to afford a down payment for a home? What has the process been like? Do you have any advice to help others who are trying to save?
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