Saving for a down payment on a house can take years. In some US states, it can take decades. Having the income to access housing is a headache and depressing for those who believe it is impossible, but there are states where the future is brighter.
ConsumerAffairs conducted a new analysis that estimates how long it would take to save a 10% down payment in each state. It compared median household income with median home price, plus tax burdens and essential living costs.
In Iowa, for example, it would take 8.7 years to save, making it the fastest and most favorable state to buy a home. In California, the estimate is 25.1 years, more than in any other state. On average, among the 50 states, the figure is 14.4 years, according to the study.
Based on that study, we provide information on the 10 states where it would take the least time to save a 10% down payment for a home, based on the state’s median income, median home price and estimated household savings.
States where it is faster to pay the down payment
Iowa
Time to save: 8.7 years
Median annual household income: $75,501
Median home price: $247,400
Ohio
Time to save: 9.9 years
Median annual household income: $72,212
Average home price: $261,700
Texas
Time to save: 10.3 years
Median annual household income: $79,721
Median home price: $339,400
Maryland
Time to save: 10.3 years
Median annual household income: $102,905
Median home price: $439,300
North Dakota
Time to save: 10.6 years
Median annual household income: $77,871
Median home price: $298,200
Kansas
Time to save: 10.6 years
Median annual household income: $75,514
Median home price: $292,600
Oklahoma
Time to save: 10.7 years
Median annual household income: $66,148
Median home price: $252,900
Illinois
Time to save: 10.7 years
Median annual household income: $83,211
Average home price: $303,300
Alaska
Time to save: 10.9 years
Median annual household income: $95,665
Median home price: $402,800
Indiana
Time to save: 11.0 years
Median annual household income: $71,959
Average home price: $276,000
Data to consider in these states
The key factor is the affordability of home prices. All but one of these states have median prices below the national average of $410,800, according to U.S. Census Bureau data.
In eight of the 10 states, median household income is roughly in line with the national average of $83,730. Shorter timelines mostly reflect lower home prices, not exceptionally high incomes.
Annual taxes and essential expenses also influence how much discretionary income households can save. Tax burdens vary by about $15,000 between states and the annual cost of basic necessities ranges from the mid-$20,000s to just over $40,000, the study found.