The cost of buying a home in the U.S. by 2030 - savings tips for first-time homebuyers

Over the past few years, we have seen homes sold at astronomical prices well above market value. The housing market has left many people wanting to buy their own homes disappointed and convinced that they will have to wait even longer. Of course, this happened during extraordinary circumstances - during a pandemic that pushed people out of densely populated cities and into suburban homes, and at record low interest rates.

However, Realtor.com's March 2023 Economic Report states that the monthly cost of financing your home (assuming you've made a 20% down payment) is up nearly $630 from last year. The heavy financial burden of owning real estate today has many people wondering: if homes are so expensive now, how much could prices rise in the future?

According to an October 2020 RenoFi report, the median price of a single-family home in the U.S. could reach $382,000 by 2030. Depending on where you live, this number may seem like pennies compared to home prices in your city. For example, the median home price in New York City in February 2023 was $760,000, but the median price in the Albany area of upstate New York was $219,000.

RenoFi also looked at projected home prices by 2030 for every state and several major U.S. cities. It predicts that San Francisco will have the highest median home price in the country at a staggering $2,612,484. This will be followed by two other California cities, San Jose with an average cost of $2,251,703 and Oakland with an average cost of $1,713,554.

According to RenoFi, U.S.

• By 2030, the median home value in New York City will be $964,101.
• The median home value in Nashville will reach $539,292. Currently, the median home value is $435,000.
• In Houston, the median home value will be $309,806 by 2030. Currently, the median home value is $258,055.

The price of a property does not always correspond to the actual price a buyer will pay. Home value is the amount of money for which a home is likely to sell on the market. However, buyers may agree to pay a price that is lower or higher than the value of the home.

The source of rising home values comes from supply and demand, as well as interest rates. However, according to expert Danielle Hale, chief economist at Realtor.com, rising wages can also be a contributing factor to rising home prices. Hale notes that while wages are rising, home prices are rising even faster.

In order to prepare for rising home prices, it is recommended that you start saving as early as possible. The earlier you start, the more money you can save and the larger down payment you can make. It is also recommended that you consider investing your money in securities to ensure that your money grows and overcomes inflation.

If you have less time to save money, you can leave it in a high-interest savings account, which will allow you to earn interest on the balance even if you don't contribute to the account.

It's important to have a plan and strive to achieve your financial goals.