15. Tucson, Arizona
Average household income: $46,432
Median home price: $158,349
20% down payment: $31,670
Years needed (20% savings rate): 3.4
Years needed (8% savings rate): 8.5
(Photo: Shutterstock)
14. Winston-Salem, North Carolina
Average household income: $46,463
Median home price: $156,079
20% down payment: $31,216
Years needed (20% savings rate): 3.4
Years needed (8% savings rate): 8.4
(Photo: Shutterstock)
13. Tulsa, Oklahoma
Average household income: $48,057
Median home price: $144,729
20% down payment: $28,946
Years needed (20% savings rate): 3
Years needed (8% savings rate): 7.5
(Photo: Shutterstock)
12. Cincinnati
Average household income: $46,511
Median home price: $139,541
20% down payment: $27,908
Years needed (20% savings rate): 3
Years needed (8% savings rate): 7.5
(Photo: Shutterstock)
11. St. Louis
Average household income: $50,216
Median home price: $142,568
20% down payment: $28,514
Years needed (20% savings rate): 2.8
Years needed (8% savings rate): 7.1
(Photo: Shutterstock)
10. Indianapolis
Average household income: $49,572
Median home price: $139,757
20% down payment: $27,951
Years needed (20% savings rate): 2.8
Years needed (8% savings rate): 7
(Photo: Shutterstock)
9. Laredo, Texas
Average household income: $47,457
Median home price: $132,840
20% down payment: $26,568
Years needed (20% savings rate): 2.8
Years needed (8% savings rate): 7
(Photo: Shutterstock)
8. Milwaukee
Average household income: $45,481
Median home price: $127,544
20% down payment: $25,509
Years needed (20% savings rate): 2.8
Years needed (8% savings rate): 7
(Photo: Shutterstock)
7. Memphis, Tennessee
Average household income: $39,883
Median home price: $104,845
20% down payment: $20,969
Years needed (20% savings rate): 2.6
Years needed (8% savings rate): 6.6
(Photo: Shutterstock)
6. Fort Wayne, Indiana
Average household income: $52,758
Median home price: $119,545
20% down payment: $23,909
Years needed (20% savings rate): 2.3
Years needed (8% savings rate): 5.7
(Photo: Shutterstock)
5. Buffalo, New York
Average household income: $39,513
Median home price: $89,605
20% down payment: $17,921
Years needed (20% savings rate): 2.3
Years needed (8% savings rate): 5.7
(Photo: Shutterstock)
4. Cleveland
Average household income: $33,499
Median home price: $74,040
20% down payment: $14,808
Years needed (20% savings rate): 2.2
Years needed (8% savings rate): 5.5
(Photo: Shutterstock)
3. Toledo, Ohio
Average household income: $40,564
Median home price: $86,362
20% down payment: $17,272
Years needed (20% savings rate): 2.1
Years needed (8% savings rate): 5.3
(Photo: Shutterstock)
2. Pittsburgh
Average household income: $61,164
Median home price: $125,706
20% down payment: $25,141
Years needed (20% savings rate): 2.1
Years needed (8% savings rate): 5.1
(Photo: Shutterstock)
1. Detroit
Average household income: $30,238
Median home price: $49,396
20% down payment: $9,879
Years needed (20% savings rate): 1.6
Years needed (8% savings rate): 4.1
(Photo: Shutterstock)
When considering purchasing a home, buyers must consider the full cost, from price and property taxes to home insurance and maintenance costs. Another key factor to consider is the down payment.
Point2, an international real estate search portal, released a study in early October that determined how much the down payment would cost millennials entering the housing market for the first time in the 100 biggest U.S. cities and how long it would take them to save that much.
Point2 researchers based their determination on current adjusted median household income for 25- to 40-year-olds in these cities, adjusted median home prices, and monthly savings rates.
They considered two different savings rates: 20% of income, which is the recommended saving rate, and 8%, which they said was the average household saving rate in the U.S., citing Trading Economics.
The study found that by considering savings rates, median incomes, and median home prices, the time needed to save for a 20% down payment in the 100 largest U.S. cities varies significantly, from a little more than two years in cities requiring the lowest down payments to as long as 10 years in the cities at the other end of the spectrum.
See the gallery for the 15 cities where millennials experience the shortest time to save 20% for a down payment.
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