Renters who want to become homeowners are having a difficult time making the move because they can't afford a down payment, according to Zillow.
Despite the fact that monthly mortgage payments are currently cheaper than rental payments, it's difficult for many among those who rent to get out of their leases. That's because banks and other mortgage lenders' requirements for a down payment are too high, Zillow said.
"It's getting increasingly difficult to clear the down payment hurdle," Svenja Gudell, Zillow's chief economist, said in a news release. "It's not uncommon for a 20% down payment on even a modest home to represent savings of $50,000 or more in some areas."
A 20% down payment on the median U.S. home would cost $36,500, as of Sept. 30, Zillow said. The most-expensive metro area for a down payment is San Jose, with about $182,200 required for a down payment of 20%. San Francisco is second at $153,600.
