How much time should you save buying a house in the United States depends on the city you live in

RealtyHop analyzed an essential topic in real estate and important for families. This has to do with the years it takes to save and make a down payment on a home in the 100 most populous cities in the United States.

The study notes that the threshold for homeownership is generally lower in the Midwest and South.

For example, in Chicago, the third most populous city in the United States, it takes 4.73 years for a household to get a mortgage with a 20% down payment. This number is 6.23 years less than that of the largest city New York and 11.01 years less than Los Angeles, they explained in El Diario NY.

Part of the methodology for the study is this: To calculate the years needed to save for a down payment on a home, they collect data on median household income by city from the most recent ACS data from the US Census Bureau and at RealtyHop they assume that a household saves 20% of its gross annual income every year. They then calculate the years needed using 20% ​​of the average sales price (down payment) and the annual amount saved.”

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Five cities with the greatest barriers to buying a house

Data from RealtyHop and published in the aforementioned New York media indicates that the top 5 cities are:

1. Los Angeles, California

With an average list price of $1.2 million, Los Angeles is the city with the highest barrier to homeownership. For a down payment on a home, a family needs 15.74 years of savings to meet its borrowing needs.

2. Miami, Florida

For RealtyHop, Miami remains one of the most unaffordable cities in that country this year. A family earning a median income of $54,858 will take 11.21 years to raise enough money for a house.

The aforementioned media noted that the average list price rose to $615,000 last year.

3. N.Y

In the Big Apple, with an average list price of $839,500 and income of $76,607, it takes homebuyers an average of 10.96 years to save 20% of the down payment on a home.

4. Irvine, California

Although the median household income of $122,948 is considerably high compared to other major cities, it takes a typical family in Irvine more than a decade to accumulate enough cash to make a down payment.

California remains the most expensive state in the United States

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5. Hialeah, Florida

Hialeah also made this list as having the highest threshold for homeownership. The analysis conducted shows that, with annual savings of $9,906 per year and an average sales price of $480,000, it will take an average Hialeah family 9.69 years to qualify for a loan.

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Five cities with the lowest threshold to buy a house

1.Chicago

According to RealtyHop, with an average list price of $85,000, it will take a typical Detroit family 2.25 years to save for a down payment if they save 20% of their household income each year.

2.Cleveland

With a median home price of $116,250 and a median household income of $37,271, it will take a typical Cleveland family 3.12 years to meet the 20% down payment requirement.

3.Kansas City, Missouri

The median household income in Kansas City is $65,256, “significantly higher than other low-barrier cities included in this index.”

With an average sales price of $229,500 and annual savings of $13,051, it will take Kansas City homebuyers 3.52 years to reach the 20% down payment.

4.Milwaukee, Wisconsin

In Milwaukee, it takes families an average of 3.62 years to save for the purchase of a home.

5. Wichita, Kansas

Wichita be bound to -they say from RealtyHop- with Milwaukee in the rankings this year, El Diario NY highlights.

With a median household income of $60,712 and a median sales price of $220,000, it takes 3.62 years to build the money needed to cover the 20% down payment needed to purchase a home.

With information from El Diario NY and RealtyHop

To see the full RealtyHop analysis, visit this link

(JO)