This is the easiest city in which to save for a down payment

August 24, 2018 - 2 min read

Chicago takes the cake

If you’re willing to move to Chicago, it might be easier than you think to save for a down payment. According to a new analysis, the Windy City is the nation’s best place to save for a home.

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Where to save for a down payment recently looked at the country’s top 35 markets, analyzing household income, housing costs and local saving rates. According to the findings, Chicago comes out on the top as the best place for buyers to save for — and eventually buy — that first home.

Potential first-time home buyers in the Windy City come in with a $50,500 annual income on average and are able to save more than $10K a year. At that rate, found locals can save for a down payment in just a mere 3 years and 3 months.

Dallas-Fort Worth came in second, at just 3 years and 5 months of savings, while Detroit took third at 3 years, 7 months. Baltimore, Indianapolis, Pittsburgh, Cleveland, St. Louis, Washington, D.C., and Austin, Texas rounded out the top 10.

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Where savings are harder to come by

On the other end of the spectrum is Portland, Oregon, where it takes local renters more than 13 years to save for a down payment in the area.

Residents in the city can only save about $5K per year, though they need nearly $70,000 for a 20 percent down payment on an average-priced home.

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Other hard-to-save cities include California’s San Jose, Los Angeles, San Diego, San Francisco and Riverside, Miami, Denver and Las Vegas.

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Aly J. Yale
Authored By: Aly J. Yale
The Mortgage Reports contributor
Aly J. Yale is a mortgage and real estate writer based in Houston who has contributed to Forbes and worked for organizations such as The Dallas Morning News, PBS, NBC, and Radio Disney.