'The cost of buying a home in the US by 2030 - tips to save money and start planning.'

Select independently determines what we write about and recommend. We receive commissions from affiliate program partners on many offers. Read more about Select on CNBC and on NBC News, and click here to read our full ad for advertisers.

Housing prices: how could they rise by 2030?

In the past few years, we have seen homes sell for astronomical prices, well above market value. It's been a real estate market that, to put it mildly, has left many potential home buyers frustrated, as if ownership has become even more unattainable than they thought. Of course, much of this happened under unusual circumstances - during a pandemic that''The figure may seem like a drop in the ocean 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 neighborhood in upstate New York was $219,000, according to Redfin.

data

RenoFi also analyzed projected home prices by 2030 for each state and some major U.S. cities. It predicts that San Francisco will have the highest median home price in the country - a staggering $2,612,484. It will be followed by two other California cities, San Jose at $2,251,703 and Oakland at $1,713,554.

Home prices have been rising over the past few years

Home prices in the U.S.

have increased 48.55% over the past 10 years, according to''RenoFi. In making the projections, RenoFi assumed that home prices will increase by the same amount again over the next decade. Here's what else RenoFi shared in its report:

• By 2030, the median home price 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 reach $309,806 by 2030. The median home value as of March 2023 is $258,055.

Further details and forecasts from RenoFi can be found on their website.

Factors affecting the rise in home values

Home values don't always match the actual price a buyer pays.''Home value represents 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 even higher than the value of the home.

What factors affect the rise in home values? Don't Quit Your Day Job, a website that provides investment resources, used home price index data from Robert Shiller, an economics professor at Yale University, and the Federal Home Loan Mortgage Agency to determine the median value of existing homes in the United States.

In September 1996, the median price was $112,230.80 ($213,963.97 after adjusting for inflation).

In September 2006, the median price was $215,734.57 ($319,869.82 after accounting for''inflation).

In September 2016, the median price was $224,817.22 ($280,141.54 after adjusting for inflation).

In September 2016, the median price was $224,817.22 ($280,141.54 after adjusting for inflation).

In September 2021, the median price was $343,122.34 ($376,307.55 after adjusting for inflation).

In September 2022, the median price was $381,471.31 ($386,653.42 after adjusting for inflation).

Experts predict that this figure will continue to rise.

How to prepare for price increases.

To prepare for higher prices, if you have less time left, you can also be smart and utilize savings in a high-yield account, such as LendingClub High-Yield Savings or UFB Preferred Savings. That way, you'll earn some interest on that money even if you don't contribute''new contributions to the account.

In addition, RenoFi's projections can help you estimate how much money you might need to buy a home in your desired state or city in the next 10 years. This can be especially helpful for people who like to have a specific goal in mind to save money more efficiently.

It is generally recommended to have a down payment of 10-20% if you plan to take out a conventional mortgage. Based on projections, you can roughly calculate how much money you'll need for a down payment and then divide that by the approximate number of months you want to give yourself before you start looking for a home.

So, if you want to buy a $400,000 home in about seven years, here's how the can''look calculations:

• If you save 10% of your down payment ($40,000) and invest the money in an account with a high interest rate of 5% per year, you need to save approximately $401 per month.
• If you save 20% of your down payment ($80,000) and invest the money in an account with a high interest rate of 5% per year, you need to save approximately $801 per month.
• If you save 10% of your down payment ($40,000) and put the money into an investment account with an estimated annualized return of 10%, you need to save approximately $337 per month.
• If you are saving 20% of your down payment ($80,000) and putting the money into an investment account with an estimated annualized return of 10%, you need to save''bout $673 a month.

Remember that you don't have to start saving $801 a month right away. You can start slowly and increase the amount as you make more money, and you can also set aside extra money that comes your way, such as tax refunds, inheritances, and annual bonuses.

It may seem like a long and complicated process at first glance, but a clear plan can make it easier to reach your financial goals.