Here’s How Long It Takes To Save For A Home In Newark, Study Says

NEWARK, NJ — Homeownership is one of the best ways to build wealth for families in America. But it can be a long and difficult road to travel for many people, including those living in Newark, a new study says.

In Newark, a family earning $46,460 would need to save for 8.29 years to afford a $77,000 down payment on a home with a median list price of $385,000, according to online real estate marketplace RealtyHop.

The 2024 “Barrier to Homeownership” study examined the top 100 most populated cities in the nation. Newark ranked 15th-highest on the list.

Researchers found that Los Angeles is the city with the worst barrier to homeownership, with an average family needing a whopping 15.74 years to save enough funds and qualify for a conventional loan.

The cheapest city to save up for a leap into homeownership? Detroit, where only 2.25 years are needed for a family earning $37,761 to afford a $17,000 down payment on a home listed at $85,000.

Properties examined in the study were listed on RealtyHop between July 2023 and December 2023. Read the full study and learn about its methodology here.

HOUSING IN NEWARK

Housing and homelessness have been a constant hot-button issue among local advocates.

“The city of Newark hasn’t even scratched the surface on housing that meets the needs of its homeless population and low-income residents,” a local activist charged at a 2022 protest outside the annual MTV Music Video Awards. See Related: Protesters Decry Poverty, Lack Of Housing At MTV Awards

However, over the past several years, the city has been taking a multi-pronged approach to both problems.

The latest state data shows that Newark has seen a “staggering” drop in people experiencing homelessness over the past year, officials said.

Newark officials pointed to a 57.6 percent reduction in the city’s unsheltered homeless population, as seen in the New Jersey Department of Community Affairs’ annual report. Read More: Newark Sees Huge Drop In Unsheltered Homeless Population, State Says

Newark has also made significant strides towards increasing the amount of housing available for low and moderate-income residents in recent years, as well as increasing protections for people who rent their homes.

• See Related: 'Affordable' Isn't Affordable: Newark's Plan To Create More Housing
• See Related: Corporations Own Most Of Newark's Homes. New Laws Are Pushing Back
• See Related: City Council Beefs Up Rent Control Laws In Newark
• See Related: Newark Residents Get 'First Dibs' On Affordable Housing Under IZO
• See Related: Buy A House For A Buck? Newark Can Sell Homes For $1 Under New Rule
• See Related: Newark Trying To Add Housing For Families Earning Under $32,000

Newark also runs a “Closing Costs” program for first-time homebuyers who are trying to purchase a property in the Brick City.

According to the city’s website, the program provides no-interest loans to first-time homebuyers to purchase a home in Newark. Over a five-year period, 20 percent of the loan is forgiven for each full year in which the recipient has lived in the home. Funds can be used for down payments or closing costs.

• See Related: Newark Council Frees Up More Money For Local Homeowner Programs

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