Durham Renters Need 17 Years to Save for Home

Why it matters

In 2019, renters in both cities needed only eight or nine years to save for the same purchase, so the timeline has roughly doubled for households trying to buy a first home. Wages have not kept pace with housing costs as many Millennials and Gen Zers also carry student loans and debt while facing higher everyday prices.

The details

The analysis divides the total cash needed for a down payment and closing costs by a household's annual savings, assuming the household sets aside 2.63% of income each year. For Durham, the $12,564 down payment reflects the 3.5% rate required by the Federal Housing Administration, and closing costs add $13,360 on top. Median renter income in Raleigh rose $21,796 between 2019 and 2026, but home prices and mortgage rates rose faster over the same period.

Timeline

1. 2019: Renters in Raleigh and Durham needed eight to nine years to save for a down payment and closing costs.

2. Late October 2019: The 30-year fixed-rate mortgage averaged 3.78%.

3. 2019 to 2026: Median household income of Raleigh renters increased $21,796.

The Home Front

Compared with 2019, when Triangle-area renters needed eight to nine years to save for a first home, the current savings timeline is roughly twice as long. Higher mortgage rates and starter-home prices account for much of the gap between those two periods.

The takeaway

The gap between renter income and the cash needed to buy has widened sharply since 2019, so the savings timeline is now a key planning figure for Durham households. Keep a current estimate of your down payment and closing costs on file so you can track progress as prices and rates change.

Further reading

For more context on how buying a first home compares across the region, see Residential coverage for Durham.