In 2015 a National Association of Realtors® survey found that 80 percent of renters have the desire to own a home. Holding most back, however, was the lack of a down payment.
To find out which cities will take the longest time to save for a home, SmartAsset® studied the 50 cities with the largest population in the country. SmartAsset’s analysis was straight forward: how long would it take to save a 20 percent down payment for the typical home based on local median income, assuming a savings of 20 percent per year of their salary. The table shows the Cities and State along with median home values and median household incomes.
The rest is math. No doubt those markets perceived as expensive are well represented—with six of the top 10 from California. Do note the interaction of income and home costs. While Los Angeles’ home price is roughly half that of San Francisco, the median salary is also one half – so the saving period is almost identical. At first look, Miami seems affordable until you realize the median household income is less than $35,000 per year.
While just the top 25-cities with the longest savings durations for a home purchase were listed, SmartAsset stated that Ft Worth, Arlington, San Antonio and El Paso would take less than three years of savings for a down payment.
To read the SmartAsset findings and a rank of the top-25 cities taking the longest time to save for a down payment click https://smartasset.com/mortgage/years-of-work-to-afford-a-down-payment-2018
As usual, the TINSTAANREM axiom is invoked — There Is No Such Thing As A National Real Estate Market. Not only do prices and incomes vary across the country, so do interest rates, therefore it is not at all surprising that there is so much difference even just to save up for a down payment.