In the current housing market, buying a home is a challenge for many Americans, but minimum wage earners are having a particularly difficult time saving for a house. A recent report from BadCredit.org—an organization with the goal of helping Americans who are struggling with debt—shows it would take the average minimum wage earner 23.1 years to put a down payment on a median-priced home. Comparatively, it would take someone making the median income, which is about $68,000 in the U.S., about 5.1 years to save for a down payment on a median-priced home.
This varies significantly from state to state. In states with low minimum wages and high housing costs, it takes even longer to afford a down payment. In Utah, it takes the longest amount of time (34.1 years) to afford a down payment, followed by New Hampshire, where it takes 29.9 years to save for a down payment on a median-priced home.
On the other hand, the American dream is a bit more realistic in several states. For instance, in Illinois, the minimum wage is $14.00 per hour, and the median home value is roughly $250,000. That means minimum-wage workers could save 8% in just 8.6 years — approximately a quarter of the time it takes the average Utah resident to do the same.
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