Yahoo Finance The Down Payment You’d Need To Comfortably Afford a Home in These Popular Cities
With interest rates and home prices as high as they are, the average American is no longer able to comfortably afford a home with a 20% down payment, a recent Zillow study found.
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In order to make monthly mortgage costs affordable — meaning principal and interest, plus property taxes and insurance, take up no more than 30% of household income — a homebuyer making the median U.S. income would need to put down a 35.4% down payment, or roughly $127,750, to afford an average-priced home. In some U.S. cities, residents earning the median income need to put down even higher percentages to keep monthly mortgage costs manageable.
Here’s a look at the down payment median income earners would need to provide to comfortably afford monthly mortgage costs in several major U.S. cities.
New York
Typical home value: $657,279
Down payment needed ($): $494,795
Down payment needed (%): 75.3%
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Los Angeles
Typical home value: $962,388
Down payment needed ($): $780,203
Down payment needed (%): 81.1%
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Chicago
Typical home value: $321,897
Down payment needed ($): $95,953
Down payment needed (%): 29.8%
Dallas
Typical home value: $381,104
Down payment needed ($): $152,586
Down payment needed (%): 40%
Houston
Typical home value: $310,707
Down payment needed ($): $76,825
Down payment needed (%): 24.7%
Washington
Typical home value: $568,862
Down payment needed ($): $188,087
Down payment needed (%): 33.1%
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Philadelphia
Typical home value: $362,204
Down payment needed ($): $103,471
Down payment needed (%): 28.6%
Miami
Typical home value: $490,088
Down payment needed ($): $316,270
Down payment needed (%): 64.5%
Atlanta
Typical home value: $387,471
Down payment needed ($): $118,239
Down payment needed (%): 30.5%
Boston
Typical home value: $701,349
Down payment needed ($): $432,875
Down payment needed (%): 61.7%
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Phoenix
Typical home value: $461,352
Down payment needed ($): $186,012
Down payment needed (%): 40.3%
San Francisco
Typical home value: $1,183,272
Down payment needed ($): $887,656
Down payment needed (%): 75%
Riverside, California
Typical home value: $584,710
Down payment needed ($): $358,926
Down payment needed (%): 61.4%
Detroit
Typical home value: $254,325
Down payment needed ($): $24,132
Down payment needed (%): 9.5%
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Seattle
Typical home value: $753,414
Down payment needed ($): $462,095
Down payment needed (%): 61.3%
Minneapolis
Typical home value: $378,924
Down payment needed ($): $102,199
Down payment needed (%): 27%
San Diego
Typical home value: $958,266
Down payment needed ($): $723,527
Down payment needed (%): 75.5%
Tampa, Florida
Typical home value: $382,802
Down payment needed ($): $181,195
Down payment needed (%): 47.3%
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Denver
Typical home value: $595,649
Down payment needed ($): $300,970
Down payment needed (%): 50.5%
Baltimore
Typical home value: $387,914
Down payment needed ($): $100,641
Down payment needed (%): 25.9%
St. Louis
Typical home value: $253,559
Down payment needed ($): $10,773
Down payment needed (%): 4.2%
Orlando, Florida
Typical home value: $398,881
Down payment needed ($): $192,533
Down payment needed (%): 48.3%
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Charlotte, North Carolina
Typical home value: $386,371
Down payment needed ($): $149,041
Down payment needed (%): 38.6%
San Antonio
Typical home value: $289,511
Down payment needed ($): $92,158
Down payment needed (%): 31.8%
Portland, Oregon
Typical home value: $556,385
Down payment needed ($): $296,427
Down payment needed (%): 53.3%
Sacramento, California
Typical home value: $586,875
Down payment needed ($): $337,769
Down payment needed (%): 57.6%
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Pittsburgh
Typical home value: $217,285
Down payment needed ($): $0
Down payment needed (%): 0%
Cincinnati
Typical home value: $287,721
Down payment needed ($): $59,573
Down payment needed (%): 20.7%
Austin, Texas
Typical home value: $466,628
Down payment needed ($): $209,333
Down payment needed (%): 44.9%
Las Vegas
Typical home value: $427,509
Down payment needed ($): $198,306
Down payment needed (%): 46.4%
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Kansas City, Missouri
Typical home value: $307,032
Down payment needed ($): $76,273
Down payment needed (%): 24.8%
Columbus, Ohio
Typical home value: $315,438
Down payment needed ($): $84,215
Down payment needed (%): 26.7%
Indianapolis
Typical home value: $282,396
Down payment needed ($): $27,570
Down payment needed (%): 9.8%
Cleveland
Typical home value: $230,536
Down payment needed ($): $31,551
Down payment needed (%): 13.7%
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San Jose, California
Typical home value: $1,631,252
Down payment needed ($): $1,320,275
Down payment needed (%): 80.9%
Nashville, Tennessee
Typical home value: $446,180
Down payment needed ($): $203,325
Down payment needed (%): 45.6%
Virginia Beach, Virginia
Typical home value: $351,095
Down payment needed ($): $112,962
Down payment needed (%): 32.2%
Providence, Rhode Island
Typical home value: $481,911
Down payment needed ($): $257,453
Down payment needed (%): 53.4%
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Jacksonville, Florida
Typical home value: $361,796
Down payment needed ($): $116,974
Down payment needed (%): 32.3%
Milwaukee
Typical home value: $348,439
Down payment needed ($): $348,439
Down payment needed (%): 39.3%
Oklahoma City
Typical home value: $235,815
Down payment needed ($): $31,331
Down payment needed (%): 13.3%
Raleigh, North Carolina
Typical home value: $449,514
Down payment needed ($): $152,410
Down payment needed (%): 33.9%
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Memphis, Tennessee
Typical home value: $242,519
Down payment needed ($): $30,852
Down payment needed (%): 12.7%
Richmond, Virginia
Typical home value: $372,080
Down payment needed ($): $105,228
Down payment needed (%): 28.3%
Louisville, Kentucky
Typical home value: $258,557
Down payment needed ($): $46,869
Down payment needed (%): 18.1%
New Orleans
Typical home value: $241,940
Down payment needed ($): $46,138
Down payment needed (%): 19.1%
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Salt Lake City
Typical home value: $549,373
Down payment needed ($): $251,131
Down payment needed (%): 45.7%
Hartford, Connecticut
Typical home value: $362,763
Down payment needed ($): $129,585
Down payment needed (%): 35.7%
Birmingham, Alabama
Typical home value: $255,033
Down payment needed ($): $19,406
Down payment needed (%): 7.6%
Data is sourced from Zillow and is accurate as of June 20, 2024.
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