The time it takes to save a down payment can vary wildly from market to market
Millennials who want to buy their first home often find saving for a down payment to be the biggest roadblock, but they just need to know where to look, according to a new analysis by Zillow Group brand RealEstate.com.
The study looked at 35 metros and identified how long it takes for first-time buyers to save for their future home purchase.
A millennial in Chicago only needs to save for three years and three months to save for a 20% down payment on a median entry-level home. The city’s $50,500 annual income among millennial households helped make it the fastest of the 35 metros analyzed.
Dallas, Detroit, and Baltimore are also ideal markets for first-time buyers, with the average millennial household needing just less than four years to reach a down payment.
Millennials in Portland, Ore., however, would need more than 13 years to save for a 20% down payment, the longest period in the study. While millennial households take in $42,300 per year, they only save an estimated $5,288 per year. Saving for a down payment in Denver and San Jose and Riverside in California also takes longer for millennials, with households needing more than 10 years.
"Contrary to popular belief, millennials want to buy homes, but high home prices, low inventory, and stagnant wage growth are some of the many factors that may be driving would-be buyers into delaying homeownership," RealEstate.com General Manager Justin LaJoie said. "However, in certain US housing markets, first-time buyers can find some relief; they just need to know where to look."
