Real Estate Mogul Says Key to Affording a Home Is To Quit Starbucks—Here’s How Long That Would Actually Take

The daily cup of coffee could be getting in the way of Gen Z achieving homeownership, and it doesn't stop there. Ride-sharing, dining out, alcohol—they're all contributing factors to delaying owning a home, according to the CEO of The Corcoran Group.

“Stop buying Starbucks coffee. I mean, stop spending money on things that are not necessary. It’s tremendous how fast that little nest egg can add up,” Pamela Liebman, CEO of The Corcoran Group, told Fortune.

The median down payment for the third quarter of 2025 is $30,400, according to a Realtor.com® report.

With mortgage interest rates hovering near 6%, some people who have been sitting on the sidelines are ready to make the move to homeownership.

Inventory isn't the problem with the number of homes for sale above the 1 million mark. Depending on where a buyer lives, home choices can be greater or smaller. Metros in the South and West are back above pre-pandemic inventory levels and still adding supply. The Northeast and Midwest remain undersupplied, according to Realtor.com economists.

Liebman pointed out that for Gen Z, trying to achieve homeownership for the first time is just as hard as it was 30 years ago—when baby boomers were trying to break into the housing market.

She said what made it more difficult all those decades ago was the lack of locations to find a home. Liebman points out that there were fewer neighborhoods to choose from (referring to New York City).

"If you think back to the '80s, the Meatpacking District wasn’t this highly desirable district,” Liebman told the outlet. “All these areas in Brooklyn that are No. 1 on people’s list, they weren’t there. So you were sort of getting jammed into these, these few neighborhoods, Upper East Side, Upper West Side, maybe a little bit of Chelsea, and Flat Iron—I don’t even think we called it Flat Iron back then, Tribeca was just coming around. So everyone was squished in the same places.”

But Liebman said young people really need to refrain from unnecessary spending.

"If you look at people who are taking an Uber instead of the subway, they’re buying their coffee, they’re buying their breakfast out, they’re spending money on things that are not necessary, they’re going out with their friends three nights a week, spending money on alcohol, food. ... These things definitely start adding up. The subway is definitely cheaper than an Uber," said Liebman.

Young people shouldn't stress about finding an apartment in the perfect location, she explained, noting that a year or two goes by quickly.

"And then, as you keep saving, you can trade into something that better suits you,” she told Fortune.

How long it will take to save for a home

If the thought of reaching the goal of a median down payment of $30,400 seems daunting, don't be deterred. The amount of time can be measured in months or years based on several factors pertaining to an individual's circumstances.

"How long it takes to save for a down payment depends heavily on income, spending, and local market conditions," Hannah Jones, senior economic research analyst at Realtor.com, explains.

"In today’s high-priced housing environment, saving an extra $10 a day may not make a significant dent, but bigger sacrifices, such as lowering housing costs by living with roommates, moving in with family, or seeking a higher-paying job, can accelerate progress much more effectively."

The median asking rent in the 50 largest metros is $1,703, according to the latest Realtor.com rent report. Nationwide, rent was slightly more affordable than in the previous years.

Jessica Vance, a San Diego real estate agent, agrees that a little sacrificing here and there helps. She explains how little things add up to big amounts.

"Those that are good stewards of money are not wasteful and do pay attention to the details with the long-term goal (down payment) in mind," says Vance.

She adds that Gen Z being able to afford a home depends on many specifics.

"Location [is] one of them, as that determines what kind of a purchase price you are looking at," Vance says.

"If Gen Z really wants to purchase a home, perhaps they get an FHA loan, which asks for 3.5% down, and live in an affordable city to start. That would be the quickest path to homeownership."

With the national median list price at $425,000, there are several affordable metros across the country where you can buy a home priced below $300,000—as a way into the housing market to begin gaining equity.

Among the Realtor.com hottest housing markets, more than a dozen metros had a median list price for a home below the national level, including Springfield, MA; Canton, OH; and Milwaukee.