Here's how many years it takes to save for a 20% down payment on a home in 12 major US cities

Getty ImagesThe dream of homeownership is becoming increasingly unrealistic for homebuyers in metropolitan areas.
  • Rising home prices and personal debt are taking a toll on homeownership in the US, according to home ownership investment company Unison’s 2019 Home Affordability Report.
  • The report takes a look at how long it would take a median-income earner in each of 12 major US cities to save for a 20% down payment on a median-priced home.
  • The results of the report are based on homebuyers who save 5% of their annual earnings and spend 30% or less of their gross income on monthly payments.
  • Visit Business Insider’s homepage for more stories.

With home prices and personal debt on the rise, the dream of homeownership is becoming more unrealistic for many prospective homebuyers in metropolitan areas.

Unison’s 2019 Home Affordability Report uses 2017 and 2018 median household income data from S&P Global to examine how long it takes to save for a 20% down payment in 12 major US cities. The report measured each city’s median household income against its median home value and found that on average, it takes median-income earners 14 years to save enough money for a down payment in the US.

The report’s findings are based on homebuyers who save 5% of their annual earnings and spend 30% or less of their gross income on monthly payments. The report assumes a 4.54% mortgage interest rate on 2018 data and a 3.99% mortgage interest rate on 2017 data.

Here’s a breakdown of how long it takes to save up for a down payment in 12 major US cities:


Columbus: It takes 12 years to save up for a 20% down payment on a median-priced home in Columbus, Ohio.

Sean Pavone/Shutterstock

The median home value in Columbus is $US251,000. Prospective buyers who earn the city’s average annual household income of $US51,ooo must save $US2,500 per year for 12 years in order to afford a 20% down payment.

S
ource: Unison


Dallas: It takes 14 years to save up for a 20% down payment on a median-priced home in Dallas, Texas.

Jeremy Woodhouse/Getty Images

The median home value in Dallas is $US182,000. Prospective buyers who earn the city’s average annual household income of $US50,ooo must save $US2,500 per year for 14 years in order to afford a 20% down payment.

Source: Unison


Philadelphia: It takes 14 years to save up for a 20% down payment on a median-priced home in Philadelphia, Pennsylvania.

Shutterstock

The median home value in Philadelphia is $US159,000. Prospective buyers who earn the city’s average household income of $US45,ooo must save $US2,200 per year for 14 years in order to afford a 20% down payment.

Source: Unison


Minneapolis: It takes 17 years to save up for a 20% down payment on a median-priced home in Minneapolis, Minnesota.

f11photo/Shutterstock

The median home value in Minneapolis is $US251,000. Prospective buyers who earn the city’s average annual household income of $US60,ooo must save $US3,000 per year for 17 years in order to afford a 20% down payment.

Source: Unison


Phoenix: It takes 17 years to save up for a 20% down payment on a median-priced home in Phoenix, Arizona.

welcomia/Shutterstock

The median home value in Phoenix is $US219,000. Prospective buyers who earn the city’s average annual household income of $US53,ooo must save $US2,600 per year for 17 years in order to afford a 20% down payment.

Source: Unison


Chicago: It takes 19 years to save up for a 20% down payment on a median-priced home in Chicago, Illinois.

The median home value in Chicago is $US261,000. Prospective buyers who earn the city’s average annual household income of $US56,ooo must save $US2,700 per year for 19 years in order to afford a 20% down payment.

Source: Unison


San Diego: It takes 31 years to save up for a 20% down payment on a median-priced home in San Diego, California.

Steve Heap/Shutterstock

The median home value in San Diego is $US596,000. Prospective buyers who earn the city’s average annual household income of $US76,ooo must save $US3,800 per year for 31 years in order to afford a 20% down payment.

Source: Unison


Miami: It takes 36 years to save up for a 20% down payment on a median-priced home in Miami, Florida.

Getty Images

The median home value in Miami is $US315,000. Prospective buyers who earn the city’s average annual household income of $US35,ooo must save $US1,700 per year for 36 years in order to afford a 20% down payment.

Source: Unison


New York City: It takes 36 years to save up for a 20% down payment on a median-priced home in New York City, New York.

Getty Images

The median home value in New York City is $US558,000. Prospective buyers who earn the city’s average annual household income of $US62,ooo must save $US3,100 per year for 36 years in order to afford a 20% down payment.

Source: Unison


San Francisco: It takes 40 years to save up for a 20% down payment on a median-priced home in San Francisco, California.

Sean Pavone/Shutterstock

The median home value in San Francisco is $US1 million. Prospective buyers who earn the city’s average annual household income of $US102,ooo must save $US5,100 per year for 40 years in order to afford a 20% down payment.

Source: Unison


Honolulu: It takes 40 years to save up for a 20% down payment on a median-priced home in Honolulu, Hawaii.

Shutterstock/Filip Carmen

The median home value in Honolulu is $US718,000. Prospective buyers who earn the city’s average annual household income of $US71,ooo must save $US3,600 per year for 40 years in order to afford a 20% down payment.

Source: Unison


Los Angeles: It takes 43 years to save up for a 20% down payment on a median-priced home in Los Angeles, California.

Melpomene/Shutterstock

The median home value in Los Angeles is $US623,000. Prospective buyers who earn the city’s average annual household income of $US58,ooo must save $US2,900 per year for 43 years in order to afford a 20% down payment.

Source: Unison

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