Median home price: $610,000
Down payment needed: $122,000
How long it takes to save: Eight years, 5.7 months
It’s interesting that two of the places in the top five for median millennial income — Hawaii at $71,977 and Washington, D.C at $72,935 — are also among the three with the longest time necessary to save up for a down payment. The reason is simple: Even when you’re earning a lot, if you live in an extremely competitive real estate market you’ll likely spend a lot more time saving up for that first house.
Methodology: Down payment and monthly mortgage payment were calculated based on the most recent median listing price and average mortgage rate per state, with 20 percent down payment. Median household income for 25-44 year-olds was used for yearly income, which was divided by 12 to find monthly income. Saving for down payment was based on saving 20 percent of monthly income, spending 50 percent on necessities and 30 percent on non-necessities.
Like this story? Like CNBC Make It on Facebook.
Don’t miss: This is the real downside of making more money, according to a new study
Be the first to comment