Millennials only need two and a half years to save up for a 20% down payment in two states
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West Virginia and Ohio are the best states for millennials who want to purchase a home, according to personal-finance website GOBankingRates.
An analysis took into account the median list home prices across all states, as well as the median millennial income of $60,932. Given a 20% monthly savings rate, GOBankingRates looked into how much time it would take a millennial to come up with a 20% down payment and estimated the monthly mortgage payment for each state.
In West Virginia and Ohio, millennials only need two and a half years to save for a 20% down payment. The median list price in West Virginia is $150,000 and the monthly mortgage payment is $693. In Ohio, the median list price is $154,900, with monthly mortgage payments at $704.
Millennials will need less than three years to save for a 20% down payment in the rest of the states that round out the top five in terms of affordability. GOBankingRates estimates 2.7 years to save for a down payment in Arkansas and Indiana. Arkansas’s median list price is $164,900 and the monthly mortgage payment is $757. The median list price in Indiana is $167,000 and the monthly mortgage payment is $757.
It would take an estimated 2.8 years to save for a down payment in Iowa, with its $169,000 median list price and $766 monthly mortgage payment.
The analysis found that Hawaii was the worst state for millennial homebuyers. It would take them 9.8 years to save for a down payment in the state given its median list price of $599,000 and monthly mortgage payment of $2,584.
California ranked second with 8.2 years, followed by Massachusetts at 6.9 years, Colorado at 6.7 years, and Oregon at 5.8 years.
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An analysis took into account the median list home prices across all states, as well as the median millennial income of $60,932. Given a 20% monthly savings rate, GOBankingRates looked into how much time it would take a millennial to come up with a 20% down payment and estimated the monthly mortgage payment for each state.
In West Virginia and Ohio, millennials only need two and a half years to save for a 20% down payment. The median list price in West Virginia is $150,000 and the monthly mortgage payment is $693. In Ohio, the median list price is $154,900, with monthly mortgage payments at $704.
Millennials will need less than three years to save for a 20% down payment in the rest of the states that round out the top five in terms of affordability. GOBankingRates estimates 2.7 years to save for a down payment in Arkansas and Indiana. Arkansas’s median list price is $164,900 and the monthly mortgage payment is $757. The median list price in Indiana is $167,000 and the monthly mortgage payment is $757.
It would take an estimated 2.8 years to save for a down payment in Iowa, with its $169,000 median list price and $766 monthly mortgage payment.
The analysis found that Hawaii was the worst state for millennial homebuyers. It would take them 9.8 years to save for a down payment in the state given its median list price of $599,000 and monthly mortgage payment of $2,584.
California ranked second with 8.2 years, followed by Massachusetts at 6.9 years, Colorado at 6.7 years, and Oregon at 5.8 years.
Related stories:
Low interest rates lead millennials to refinance
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