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New York Times
4 hours ago
- Business
- New York Times
How Long Did Mom and Dad Save for Their Down Payment?
With each new generation of home buyers, housing prices rise — and so does the time it takes to save enough money. Between 1970 and 1985, a typical American family could save 10 percent of their income for about five years and accumulate a 20 percent down payment on a median-priced existing single-family home, according to a New York Times analysis of income and housing-price data from the U.S. Census Bureau and the National Association of Realtors. The analysis used the census definition of family income, which includes income of family members 15 or older living in the household, but not other members of the household, such as roommates. As of 2023, the year representing the most recent census data for income, it would take nearly eight years, the data shows. A major reason for the discrepancy is that home prices have increased at a faster rate than family income. And in recent years, a shortage of homes has led to greater price increases. In 2023, the median sale price of an existing single-family home ($394,100) was about four times more than the median family income ($100,800). That gap is nearly twice as wide as it was in 1970, the data shows, meaning that many American families — even those with above median earnings — will struggle to keep up with prices. It's important to remember that the gap may be a lot wider depending on where you live. In New York City, for example, the median home price according to Zillow is $872,667. According to the census, the median family income is $90,619. At those levels, it would take a family 19 years to save up a 20 percent down payment. Loans that allow lower down payments exist for some, including first-time buyers and veterans, but qualified borrowers still need to manage the resulting higher monthly payments. Reaching 20 percent of the purchase price can be helped by salary increases or depositing money into high-interest savings accounts. Earning 5 percent interest can cut the time it takes to save for a down payment by a year. But it would still take two to three years longer than it did 40 or 50 years ago. Saving For a Home The rise in median home prices has outpaced that of median earnings, so saving for a down payment takes a lot longer than it used to. Median family income Median sale price of existing homes Years of saving Year 2023 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 $100,800 $84,350 $70,700 $60,240 $56,190 $50,730 $40,610 $35,350 $27,740 $21,020 $13,720 $9,867 $394,100 $300,200 $223,900 $173,100 $219,000 $147,300 $117,000 $97,300 $75,500 $62,200 $35,300 $23,000 7.8 7.1 6.3 5.7 7.8 5.8 5.8 5.5 5.4 5.9 5.1 4.7 Median family income Median sale price of existing homes Years of saving Year 2023 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 $100,800 $84,350 $70,700 $60,240 $56,190 $50,730 $40,610 $35,350 $27,740 $21,020 $13,720 $9,867 $394,100 $300,200 $223,900 $173,100 $219,000 $147,300 $117,000 $97,300 $75,500 $62,200 $35,300 $23,000 7.8 7.1 6.3 5.7 7.8 5.8 5.8 5.5 5.4 5.9 5.1 4.7 Sources: U.S. Census Bureau; National Association of Realtors By The New York Times
Fox News
19-05-2025
- Business
- Fox News
New projection signals good news for families, workers in Trump's 'big, beautiful bill'
FIRST ON FOX: A key U.S. economic agency is projecting that President Donald Trump's tax policy in his "one big, beautiful bill" will lead to increased take-home pay for American families and higher wages for U.S. workers. The Council of Economic Advisers (CEA), which advises the White House on economic policy, released a report on Monday morning that said, "Taken as a whole, the CEA estimates that the tax cuts in the President's proposals and the One Big Beautiful Bill will substantially boost investment and GDP relative to if expiring provisions from the [Tax Cuts and Jobs Act] are not extended." Congressional Republicans are working to permanently extend Trump's 2017 Tax Cuts and Jobs Act (TCJA), as well as implement a list of new, shorter-term Trump tax policies, like eliminating penalties on tipped and overtime wages, while granting seniors an added tax deduction. Republican leaders have warned that failure to extend TCJA could lead to a tax increase of up to 22% for millions of families. But extending them could lead to more money in people's pockets in the long run, the CEA said. "For workers and families, the CEA forecasts that wages will be about $6,100 to $11,600 higher, with family take-home pay $7,800 to $13,300 higher because of the increase in wages and reduction in tax obligations," the new analysis said. The CEA said the added deduction for seniors, meanwhile, would increase the average take-home pay for qualifying seniors by approximately $400 to $450 per year. If passed, the policies would also boost U.S. investment in the long run from 4.9% to 7.5%, according to the projection, and could save or create as many as 4.2 million full-time equivalent (FTE) jobs in the long run. It also estimated that Trump's "no tax on tips" proposal alone would increase tipped workers' pay by an average $1,675 per year, while eliminating the tax on overtime wages "will cause overtime workers to increase their overtime hours by 4.7 percent, leading to a 0.2 percent increase in aggregate labor supply while the provision is in effect." "As a result, the level of GDP increases by 0.1 to 0.2 percent in the short run. The average overtime worker receives a tax cut of between $1,400 and $1,750 per year," the projection said. White House press secretary Karoline Leavitt said during a Monday morning briefing, "This bill will give Americans the largest tax cuts in our nation's history. When Republicans pass the bill, Americans will be keeping more of their hard-earned money and taking home much bigger paychecks." "If Democrats get their way and the Trump tax cuts are not extended, Americans will face the largest tax hike in history to the tune of $4 trillion. Republicans must not side with Democrats in helping them raise taxes," Leavitt said. It comes as Democrats accuse Republicans of trying to gut critical programs like Medicaid and Social Security to secure tax increases for wealthy Americans. They've pointed to projections like those by the Joint Committee on Taxation, which said people making less than $50,000 per year would get $263 in tax relief, and those making over $1 million would get more than $81,000. But Republicans have argued they are focused on aiding the working and middle classes with Trump's tax bill – while not raising taxes on any Americans. Rep. Mike Haridopolos, R-Fla., also pointed out last week that Republicans' bill does not touch the top income tax bracket. "I kept hearing this idea that we're cutting taxes on the rich," Haridopolos said, referring to conversations by his Democratic colleagues on the House floor last week. "The current rate is 37%. Under our new proposed bill, it's still 37%. We're keeping that rate static, we're not cutting taxes for the rich. What we need to do, of course, is invest in the people again – the best way you do that is offer tax relief." Republicans are working to pass Trump's policies on tax, immigration, energy, defense, and the national debt all in one massive bill via the budget reconciliation process. Budget reconciliation lowers the Senate's threshold for passage from 60 votes to 51, thereby allowing the party in power to skirt the minority – in this case, Democrats – to pass sweeping pieces of legislation, provided they deal with the federal budget, taxation, or the national debt. House Republicans are hoping to advance Trump's bill through the House by the end of this week, with a goal of a final bill on the president's desk by Fourth of July.
Yahoo
19-05-2025
- Business
- Yahoo
Tell Us How The Cost Of Living Has Gone Up For You This Year
I probably don't need to tell you that the cost of living has really seemed to skyrocket in the past few since a certain someone took office. Despite President Trump's promises to lower egg prices and costs for the average American family, people have found that they're actually paying far more for essentials like groceries... ...And gas... Related: Guess Who Said These Famous Cartoon Catchphrases ...And anything from another country, or anything that even uses materials from another country, due to Trump's tariffs. This is not even to mention the housing market, where 30-year mortgage rates are at almost 7%, and the rental market is equally terrible. So, in a time of so much financial uncertainty and rising have you been affected? Related: We Know If You've Met Your Soulmate Or Not Based On Your Dessert Preferences Perhaps you've found grocery prices are so expensive that you've completely switched your diet and shopping habits, and there are items you completely avoid. Maybe you've moved back in with your parents or with roommates to save on rent, or maybe you've been forced to sell your home. Maybe you've taken on a second job or tried your hand in the gig economy, or tried to jump jobs to get higher pay (though with the way the job market Maybe you're a small business owner who's been affected by the tariffs, and you've had to increase your prices — only to see your sales tank. Whatever you've been dealing with, we want to hear about it. Let us know specifically how the cost of living has gone up for you, how it's affected your life, and how you're dealing with it in the comments below, or via this anonymous form, and you could be featured in an upcoming BuzzFeed Community post. Also in Community: I'm Preeeeeetty Sure I Can Tell If You're A Preteen, Teen, Or An Adult Based On This Quiz Also in Community: If You Can Name These Kids' Shows From A Single Theme Song Lyric, You're A Certified Nostalgia Expert Also in Community: Did You Know I Can Guess Your Zodiac Sign Based *Solely* On Your Favorite Foods?
Washington Post
13-05-2025
- Business
- Washington Post
How you can shop for money-saving appliances if Trump ends Energy Star
What's extraordinarily popular, saves American families about $450 annually and may go away very soon? The Energy Star program. Like roughly 90 percent of the public, you may know Energy Star by its iconic blue stickers on high-efficiency appliances. Only efficient appliances in each category — washers, refrigerators and so on — can display the label. Americans bought more than 300 million Energy Star-certified products in 2021 alone.
Bloomberg
12-05-2025
- Business
- Bloomberg
Low-Income US Families Face Growing Gap Between Earnings, Costs
There's a growing gap between what low-income families earn and what it actually costs to live in the US, according to a new study that says headline measures of inflation fail to capture the burden on these households. The report by the Ludwig Institute for Shared Economic Prosperity compares Americans' incomes to a Minimal Quality of Life Index, a metric that accounts for essential living expenses and other needs for well-being. It found that the bottom 60% of US households — who made about $38,000 on average in 2023 — fell more than $29,000 short of meeting the threshold to afford those goods and services.
