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Cutting Streaming and Food Delivery Could Help Renters Buy a Home Years Sooner, Mortgage Research Network Analysis Finds

prnewswire.com
DIS The article mentions streaming services as a discretionary spending category that could be cut to save for a down payment. This is a general observation and not specific to Disney's performance or outlook. NFLX Netflix is mentioned as a streaming service that consumers could cut back on to save money for a home down payment. This is a general statement about the category, not a specific negative outlook for Netflix. AMZN Amazon is indirectly referenced through its food delivery services (e.g., Amazon Fresh, Whole Foods delivery) as a discretionary spending category. The article focuses on consumer saving habits, not Amazon's business performance. CMG Chipotle is a food delivery service mentioned as a discretionary spending category that could be reduced to save for a down payment. This is a general observation about consumer spending habits and not a specific negative outlook for Chipotle. MCD McDonald's, as a food service provider, is indirectly referenced through the 'food delivery' category. The article's focus is on consumer savings, not the company's operational performance. YUM Yum! Brands, through its subsidiaries like Pizza Hut and Taco Bell, is indirectly included in the 'food delivery' category. The article discusses consumer spending habits, not the company's financial health. SBUX Starbucks is a discretionary spending item (social activities, coffee purchases) that consumers might cut back on. The article's sentiment is neutral towards the company, focusing on consumer behavior. ALL The article mentions an Ally Bank survey as a data source. Ally Bank is a financial institution, and its mention is for data sourcing, not an assessment of its stock performance. ALLY

Redirecting discretionary spending could generate nearly $7,700 per year toward a down payment

COLUMBIA, Mo., Feb. 12, 2026 /PRNewswire/ -- By redirecting everyday discretionary spending on services like streaming, food delivery and social activities, young renters could save enough for a 5% down payment for a home in 35 of the top 50 U.S. housing markets in three years or less, according to Streaming or Starter Home?, a new Mortgage Research Network released today.

To estimate typical discretionary spending, the analysis drew on data from Deloitte's Digital Media Trends, an Ally Bank survey and other industry research, focused on Gen Z spending habits. The study examined four common categories of non-essential spending, including video and music streaming, food delivery, social activities and discretionary shopping. Together, they totaled an average of $641 per month.

Starting small can create a snowball effect that puts homeownership within reach in just a few years.

Redirected into savings, that amount equals roughly $7,700 per year. In many U.S. housing markets, that level of consistent saving is enough to fund a 5% down payment on a median-priced home in just a few years. Although the national average is 2.7 years, local housing costs can dramatically speed up or slow down the path to a down payment.

Pittsburgh tops the list, where renters could save a 5% down payment in just 1.5 years. Other markets with relatively short timelines include Memphis, Oklahoma City, Birmingham, Ala., and Detroit, where prospective buyers could reach a 5% down payment in under two years.

At the opposite end of the spectrum, saving $641 per month could take much longer to accumulate a 5% down payment in the priciest markets. San Jose leads with 10.1 years, followed by San Francisco (7.1 years), Los Angeles (6.1 years), San Diego (6.0 years) and Boston (4.7 years),

"Gen Z isn't going to give up every convenience any more than Gen X would have given up buying Nirvana CDs," said Tim Lucas, the report's author and lead analyst at Mortgage Research Network. "But this study shows that there are non-essential expenses almost anyone can cut to reach a financial goal, whether that's homeownership, investing or building an emergency fund. Starting small can create a snowball effect that puts homeownership within reach in just a few years."

Although a 5% down payment is not required for all mortgage programs, it can help buyers qualify for better pricing and lower mortgage insurance costs, Lucas noted, adding that any savings beyond the down payment can also be used for emergency reserves, furnishings or home improvements.

Time To Save a 5% Down Payment: Top 50 U.S. Cities

Market

Median Home Price

5% Down Payment

Years Saving $641/Month

5% Down Payment Reached

United States

$410,800

$20,540

2.7

October 2028

Atlanta, Ga.

$381,271

$19,064

2.5

July 2028

Austin, Texas

$428,390

$21,419

2.8

November 2028

Baltimore, Md.

$396,874

$19,844

2.6

August 2028

Birmingham, Ala.

$254,873

$12,744

1.7

September 2027

Boston, Mass.

$721,075

$36,054

4.7

October 2030

Buffalo, N.Y.

$278,902

$13,945

1.8

November 2027

Charlotte, N.C.

$385,094

$19,255

2.5

August 2028

Chicago, Ill.

$340,733

$17,037

2.2

April 2028

Cincinnati, Ohio

$299,343

$14,967

1.9

January 2028

Columbus, Ohio

$323,122

$16,156

2.1

March 2028

Dallas, Texas

$363,356

$18,168

2.4

June 2028

Denver, Colo.

$569,930

$28,496

3.7

October 2029

Detroit, Mich.

$262,145

$13,107

1.7

October 2027

Fresno, Calif.

$404,288

$20,214

2.6

September 2028

Grand Rapids, Mich.

$344,969

$17,248

2.2

April 2028

Houston, Texas

$306,425

$15,321

2.0

January 2028

Indianapolis, Ind.

$288,010

$14,401

1.9

December 2027

Jacksonville, Fla.

$350,205

$17,510

2.3

May 2028

Kansas City, Mo.

$314,952

$15,748

2.0

February 2028

Los Angeles, Calif.

$945,428

$47,271

6.1

March 2032

Louisville, Ky.

$270,580

$13,529

1.8

November 2027

Memphis, Tenn.

$241,603

$12,080

1.6

August 2027

Miami, Fla.

$472,130

$23,607

3.1

February 2029

Milwaukee, Wis.

$371,266

$18,563

2.4

June 2028

Minneapolis, Minn.

$382,160

$19,108

2.5

July 2028

Nashville, Tenn.

$451,356

$22,568

2.9

January 2029

New York, N.Y

$709,880

$35,494

4.6

September 2030

Oklahoma City, Okla.

$240,735

$12,037

1.6

August 2027

Orlando, Fla.

$387,115

$19,356

2.5

August 2028

Philadelphia, Pa.

$380,104

$19,005

2.5

July 2028

Phoenix, Ariz.

$446,926

$22,346

2.9

December 2028

Pittsburgh, Pa.

$225,318

$11,266

1.5

July 2027

Portland, Ore.

$544,435

$27,222

3.5

August 2029

Providence, R.I.

$505,220

$25,261

3.3

May 2029

Raleigh, N.C.

$439,338

$21,967

2.9

December 2028

Richmond, Va.

$382,022

$19,101

2.5

July 2028

Riverside, Calif.

$579,877

$28,994

3.8

November 2029

Sacramento, Calif.

$574,751

$28,738

3.7

October 2029

Salt Lake City, Utah

$555,919

$27,796

3.6

September 2029

San Antonio, Texas

$278,854

$13,943

1.8

November 2027

San Diego, Calif.

$916,746

$45,837

6.0

January 2032

San Francisco, Calif.

$1,099,607

$54,980

7.1

March 2033

San Jose, Calif.

$1,547,794

$77,390

10.1

February 2036

Seattle, Wash.

$739,435

$36,972

4.8

November 2030

St. Louis, Mo.

$266,378

$13,319

1.7

October 2027

Tampa, Fla.

$358,904

$17,945

2.3

May 2028

Tucson, Ariz.

$342,635

$17,132

2.2

April 2028

Tulsa, Okla.

$245,894

$12,295

1.6

September 2027

Virginia Beach, Va.

$360,624

$18,031

2.3

June 2028

Washington, D.C.

$574,999

$28,750

3.7

October 2029

To view the full report, including methodology details, please visit: https://www.mortgageresearch.com/articles/streaming-or-starter-home/

About Mortgage Research Network

Based in Columbia, Missouri, MortgageResearch.com provides real estate advice, research, and news to help homebuyers navigate the mortgage landscape. With a focus on simplifying decisions around homeownership, the site delivers in-depth analyses and reports on market trends, lending practices, and homebuying tips.

SOURCE Mortgage Research Network