Get the data: How many years it takes to save and keep a home in the US

To better understand the financial hurdles facing homebuyers across the United States, RealtyHop analyzed the years it takes to save for a down payment in the 100 most populous US cities.

Via El Diario NY

The real estate company notes that home prices have risen across the country, making homes in major cities unaffordable. Despite recent signs of a cooling by the Federal Reserve’s policy on interest rates, more and more households, especially those with low and moderate incomes, are struggling to find the funds to meet the 20% requirement. Initial payment.

Key Analysis Results:

-Los Angeles is the city with the worst barriers to home ownership. It takes the average family in Los Angeles 15.74 years to save enough funds and qualify for a conventional loan.

-On the other hand, it only takes a Detroit family 2.25 years to pay off a 20% down payment on a home, nearly four months less than our report last year.

– California tops all other states, with 6 cities in the top 10, including Los Angeles, Irvine, San Diego, Long Beach, Anaheim, and Santa Ana.

The barrier to home ownership is generally lower in the Midwest and South. Chicago, the third most populous city in the United States, takes 4.73 years for a family to get a mortgage with a 20% down payment. This number is 6.23 years younger than the largest city, New York, and 11.01 years younger than Los Angeles.

5 Cities With the Highest Barriers to Home Ownership

1. Los Angeles, California

With a median list price of $1.2 million, Los Angeles ranks as the city with the highest barrier to homeownership. Assuming the average Los Angeles household puts aside 20% of their annual income ($15,249 or $1,271 per month) for a down payment on a home, it would take them 15.74 years of savings to pay off the loan.

2.Miami, Florida

Miami is one of the most affordable cities in the country this year. The gap between incomes and home prices has widened in recent years as out-of-town buyers and investors continue to flock to the city.

Local residents of Miami, who earn a median income of $54,858, would need 11.21 years to accumulate enough cash for a home.

3. New York, New York

The homeownership barrier in New York City has improved slightly this year, thanks to rising median household incomes and falling median list prices. With a median list price of $839,500 and an income of $76,607, it takes home buyers an average of 10.96 years to save 20% of the down payment on a home.

4. Irvine, California

Another California city made the top five this year. Despite a significantly higher median household income of $122,948 than other major cities, it still takes more than 10 years for a typical family in Irvine to accumulate enough cash to cover a down payment.

Read more in El Diario NY