Home Affordability at Decade Low, Breaking Even on Home Purchases Now Takes Over 13 Years
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Today's housing market is the least affordable it's been in decades, with mortgage rates at 8% and rising home prices.
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Zillow estimates it will now take 13.5 years for new homebuyers to break even on their purchase, compared to the typical 4-6 years.
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High cost markets like San Francisco have shorter breakeven points around 7 years, while affordable markets like Cleveland could take over 20 years.
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Factors like down payment percentage and interest rates impact the breakeven timeline. Higher down payments shorten the duration.
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While breaking even is ideal before selling, homeowners may sell for non-financial reasons without reaching the breakeven point.