Study Reveals Savings Needed In Hawaii To Buy A Home – 2024 vs 1970

Our findings show Hawaii had the number one largest cost increase of any state in the country.

• Savings needed for a 20% down payment in 2024: $194,329
• Savings needed for a 20% down payment in 1970: $56,663 (adjusted for 2024 dollars)
• Increase: 342% over and above the rate of inflation

from GoBankingRates, October 7, 2024

National Savings Day, which is on Oct. 12, serves as a reminder to all generations that developing smart savings habits today builds a strong foundation that enables you to reach important milestones, like saving to buy a home or plan for retirement, within your financial journey.

However, many generations struggle to save money. GOBankingRates recently surveyed 1,023 Americans and asked respondents how much money they have in the bank to learn more about each generation’s savings habits.

• For overall respondents, 23% of Americans said they have no savings. An additional 17% of overall Americans said they had less than $500 in savings.have less than $500 in savings.
• Nearly 50% of millennials (ages 28 through 43) said they did not have any savings while 33% of millennials have less than $500 saved.
• 21% of baby boomers (ages 55 to 64) do not have any savings. An additional 13% of boomers said they

The Savings Needed To Buy a Home: Millennials vs. Boomers

One of the toughest savings challenges for Americans is the rising cost of homeownership in recent decades. The savings needed for millennials to buy a first home is drastically different than boomers, even when adjusting for inflation.

In a new analysis, GOBankingRates uncovered how much savings was needed to buy a home in 1970, when many boomers bought their first homes, versus 2024. Each state’s 1970 home value (not adjusted for inflation) was sourced and the amount of savings was then determined for a 20% down payment in 1970 (also not adjusted for inflation) and in 1970 dollars. Using Zillow to find the 2024 home value in each state, GObankingRates found the same figures adjusted for inflation and in 2024 dollars. The savings needed to afford a 20% down payment was then calculated for all 50 states.

Key Findings

Nationwide, the savings needed for a 20% down payment has increased by around $45,000 for homeowners, when adjusted for inflation. In 1970, homeowners needed $3,400 for a 20% down payment on the average home, compared to $71,688 in 2024. Without adjusting for inflation, this is an increase of more than $68,000.

On the statewide level, the savings needed for a 20% down payment increased by more than $100,000 in Hawaii and California, when adjusted for inflation.

Buyers purchasing a home in Florida in 1970 needed $24,215 (in 2024 dollars) for a 20% down payment. In 2024, this amount is $83,244. That’s a difference of $59,028, more than triple the amount of savings needed in 1970.

Below are the 15 states that are the most expensive, and require significant savings, to buy a home in 2024:

1. Hawaii

Home value in 1970 (not adjusted for inflation): $35,100
Home value in 1970 (in 2024 dollars): $283,316
Savings needed for 20% down payment in 1970 (in 2024 dollars): $56,663

Home value in 2024 (in 2024 dollars): $971,644
Savings needed for 20% down payment (2024): $194,329

Difference needed from 1970 to 2024 at 20% down: $137,666

read … The State of Savings in America: How Millennials and Boomers Compare