13 November . 2018
Austin ranks as best city for Millennials to save for a home
A new study from Zillow looked at how long it takes Millennials to save a 20% down payment today, and Austin ranks as the fastest and easiest city in the nation for young people to become first-time homebuyers.
Zillow’s report compared how long it takes Millennial homebuyers to save a 20% down payment today compared to how long it took in 1988, when their parents would have been first-time homebuyers.
The bottom line is that it now takes 7.2 years for buyers to save 20% down payment for a home, based on national medians for home prices and incomes, and assuming that first-time buyers saved 10% of their income each year. That’s up from the 5.7 years it took in 1988, based on the same medians from 30 years ago.
The good news is that Austin is one of the few U.S. cities where it actually takes less time to save a 20% down payment than it did 30 years ago. Young buyers can save a 20% down payment almost two years faster in Austin in 2018 than they could in 1988.
Austin was one of only four U.S. cities in the study where it was faster to save a 20% down payment today than 30 years ago. The other cities include Indianapolis (almost 8 months shorter), San Antonio (5 months shorter) and Dallas (less than two months shorter).
By contrast, buyers in San Jose, Calif., would need 13.3 extra years to save a 20% down payment today compared to 1988. Down payments in other California cities, as well as the Pacific Northwest, Florida and Colorado, were similarly out of reach for today’s young homebuyers.
Rancho Sienna has recently introduced new homes priced from the mid $200,000s by Lennar, Pulte and other leading national homebuilders that are ideal for first-time homebuyers. At Rancho Sienna, first-time buyers can find affordable new homes and still enjoy the benefits of living in a major master-planned community with more than 100 acres of parks, trails and natural spaces. And even if you don’t have kids yet, Rancho Sienna’s highly regarded Liberty Hill ISD schools can be great for property values.
And here’s even more good news: while it’s great to have a 20% down payment, it’s possible to start enjoying all the advantages of homeownership with a much lower down payment.
Explore new homes priced from the mid $200,0000s in Rancho Sienna using our interactive Homefinder.
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