Homebuyers across the United States now face a significantly longer financial timeline before purchasing a home makes more sense than renting, according to a new analysis from real estate technology company Zillow, which found that a median-income household needs nearly 15 years to both save for a down payment and financially break even on homeownership.

According to Zillow, a household setting aside 10% of the median income needs 8.5 years to reach a 20% down payment on a typical single-family home nationally, followed by another 6.2 years before buying becomes more cost-effective than continuing to rent. Combined, that puts the total national breakeven timeline at just under 15 years, a figure Zillow arrived at by measuring two distinct phases: the time required to save for a down payment, and the additional time needed to recover the upfront costs of homeownership relative to renting.

"Buying a home is a financial commitment measured not just in dollars, but in years," Zillow wrote in its analysis. "Whether to buy or rent is a complex question that depends on where you want to live and your lifestyle preferences, in addition to your financial situation."

Kara Ng, senior economist at Zillow, said the breakeven timeline offers homebuyers a more complete picture of a housing market than list prices alone can provide. "The common wisdom is that saving early to buy a home is the smart financial move, but the reality is more nuanced," Ng said. "The breakeven number tells you something about a market that a price tag alone doesn't." Ng encouraged prospective buyers to factor that longer horizon directly into their decision-making process.........

© International Business Times