Saving for a down payment is a real drag these days thanks to soaring home prices and high interest rates.
RealEstate.com’s analysis factors in median household income among Millennials and their estimated annual household savings to determine how long it would take to save for a 20% down payment on a starter home or a home priced in the bottom third of their markets. "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 in a statement. "However, in certain U.S. housing markets first-time buyers can find some relief; they just need to know where to look."
Chicago, Dallas-Fort Worth, Detroit, Baltimore and Indianapolis are the five cities where it is easiest to save for a down payment.
In the top spot of Chicago, the median, annual household income among Millennials is $50,500, and of that number Millennials squirrel away an estimated $10,821 per year.
With those savings, it will take a Millennial Chicagoan roughly three years to save up for a down payment on a median, entry-level home in the city.
Currently, the median home value for this type of home in Chicago is $177,300.
Dallas-Fort Worth came in a close second with a three-year and five-month timeline to save up for a $185,400 home in the metro with a Millennial median income of $50,600 and savings of $10,843 per year.
4, with a timeline of three years and eight months; and Indianapolis took spot No.