Study Reveals Challenges for Minimum Wage Workers to Afford Home Down Payments Across the U.S.

In a new study by BadCredit.org , researchers put a price tag on the formidable obstacles minimum wage workers face to afford a home across the U.S. The analysis compares Zillow home prices over the past year to minimum wages in every state.

"The findings are a sobering reminder of the financial hurdles that low-income earners face in achieving the American Dream of homeownership," saidJon McDonald, Senior Editor at BadCredit.org. "While we're seeing increases in minimum wage, such as the recent rise forCalifornia'sfast food workers, these steps are often insufficient to bridge the gap in high-cost housing markets."

Key Findings:

• If they started saving 10% of their paycheck at age 18, workers could afford an 8% down payment in roughly 23.1 years at age 41. That's 4,809 hours of work .

• Salaried workers making the U.S. median income achieve the same milestone in just 5.1 years .

Where is it Least Feasible for Minimum Wage Workers to Own a Home?

• Utah: It takes 34.1 years to afford a down payment, the longest time of any state. On their median income, the same goal is met in 6.5 years .

• New Hampshire: Minimum wage workers can afford a down payment in 29.9 years .

• In 10 other states, includingNorth CarolinaandTexas, it would take minimum wage workers more than two decades .Hawaii,Montana, andCaliforniaare the only three to make this list with minimum wages above the federal wage($7.25)due to their comparatively high housing costs.

The April increase in CA brings renewed attention to wage sufficiency in high-cost states. While this provides relief, the study indicates that even at an elevated wage, affording a home remains a distant goal for many.

Where is it Most Feasible for Minimum Wage Workers to Own a Home?

The American dream is more realistic in these states:

• Illinois: Minimum-wage workers could save in 8.6 years.



• In West Virginia , Arkansas , and Missouri workers can save for a down payment in less than 10 years.

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