via MSN:
Millennials are getting shut out of the housing market at alarming rates. Around 70% of millennials say they cannot afford a home due to the hike in interest rates and home prices. A recent study conducted by the Federal Reserve Bank of St. Louis Center for Household Financial Stability also found that millennials have around 35% less wealth than was predicted based on experiences of earlier generations when they were around the same age.
A vast majority of millennials are renters, and nearly half of the population from 18-34 are rent-burdened. Rent-burdened means that 30% or more of their total wealth goes toward rent.
A recent report published by Unison stated that nationwide, it can take nearly 15 years to save up for a 20% down payment on a median-priced home if you also make a median income. In Los Angeles, someone would need to save for around 43 years. In New York and Miami that number is 36 years and in San Diego the number is 31.
This data indicates that if you are currently 26 years old and want to live in any of those cities, you will be 69 by the time you can afford a down payment.