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 .
FilippoBacci / Getty Images/iStockphoto New York Typical home value: $657,279 Down payment needed ($): $494,795 Down payment needed (%): 75.3% Be Aware: 7 Worst States To Buy Property in the Next 5 Years, According to Real Estate Agents
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frankpeters / Getty Images Los Angeles Typical home value: $962,388 Down payment needed ($): $780,203 Down payment needed (%): 81.1%
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©Shutterstock.com Chicago Typical home value: $321,897 Down payment needed ($): $95,953 Down payment needed (%): 29.8% Sean Pavone / Shutterstock.com
Dallas Typical home value: $381,104 Down payment needed ($): $152,586 Down payment needed (%): 40% Sean Pavone / Getty Images/iStockphoto Houston Typical home value: $310,707 Down payment needed ($): $76,825 Down payment needed (%): 24.7% SeanPavonePhoto / Getty Images/iStockphoto
Washington Typical home value: $568,862 Down payment needed ($): $188,087 Down payment needed (%): 33.1% Discover More: In Less Than a Year, You Might Not Be Able To Afford To Live in These 6 US Housing Markets
SeanPavonePhoto / Getty Images/iStockphoto Philadelphia Typical home value: $362,204 Down payment needed ($): $103,471 Down payment needed (%): 28.6%
Sean Pavone / Getty Images/iStockphoto Miami Typical home value: $490,088 Down payment needed ($): $316,270 Down payment needed (%): 64.5% Sean Pavone / Getty Images/iStockphoto Atlanta Typical home value: $387,471 Down payment needed ($): $118,239 Down payment needed (%): 30.5% DenisTangneyJr / Getty Images Boston Typical home value: $701,349 Down payment needed ($): $432,875 Down payment needed (%): 61.7% Explore More: Cheapest Places To Buy a Home in Every State
Kruck20 / iStock.com Phoenix Typical home value: $461,352 Down payment needed ($): $186,012 Down payment needed (%): 40.3% Nicolas McComber / Getty Images San Francisco Typical home value: $1,183,272 Down payment needed ($): $887,656 Down payment needed (%): 75% Davel5957 / Getty Images/iStockphoto Riverside, California Typical home value: $584,710 Down payment needed ($): $358,926 Down payment needed (%): 61.4% Steven_Kriemadis / Getty Images/iStockphoto Detroit Typical home value: $254,325 Down payment needed ($): $24,132 Down payment needed (%): 9.5% Read Next: 3 Florida Cities Where You Can Buy Homes For $100,000 or Less
Sean Pavone / Getty Images/iStockphoto Seattle Typical home value: $753,414 Down payment needed ($): $462,095 Down payment needed (%): 61.3% Rudy Balasko / Shutterstock Minneapolis Typical home value: $378,924 Down payment needed ($): $102,199 Down payment needed (%): 27% Art Wager / Getty Images San Diego Typical home value: $958,266 Down payment needed ($): $723,527 Down payment needed (%): 75.5% csfotoimages / Getty Images Tampa, Florida Typical home value: $382,802 Down payment needed ($): $181,195 Down payment needed (%): 47.3% Be Aware: 10 Dangerous Cities You Shouldn’t Buy a Home in No Matter the Price
welcomia / Shutterstock Denver Typical home value: $595,649 Down payment needed ($): $300,970 Down payment needed (%): 50.5% Sean Pavone / Getty Images/iStockphoto Baltimore Typical home value: $387,914 Down payment needed ($): $100,641 Down payment needed (%): 25.9% f11photo / Getty Images/iStockphoto St. Louis Typical home value: $253,559 Down payment needed ($): $10,773 Down payment needed (%): 4.2% Kruck20 / iStock.com Orlando, Florida Typical home value: $398,881 Down payment needed ($): $192,533 Down payment needed (%): 48.3% Check Out: 10 Housing Markets That Will Plummet in Value Before the End of 2024
Sean Pavone / Getty Images/iStockphoto Charlotte, North Carolina Typical home value: $386,371 Down payment needed ($): $149,041 Down payment needed (%): 38.6% ©Shutterstock.com San Antonio Typical home value: $289,511 Down payment needed ($): $92,158 Down payment needed (%): 31.8% DaveAlan / Getty Images Portland, Oregon Typical home value: $556,385 Down payment needed ($): $296,427 Down payment needed (%): 53.3% Davel5957 / Getty Images/iStockphoto Sacramento, California Typical home value: $586,875 Down payment needed ($): $337,769 Down payment needed (%): 57.6% Find Out: Barbara Corcoran: 3 Cities To Invest In Real Estate Now Before Prices Skyrocket
f11photo / Getty Images/iStockphoto Pittsburgh Typical home value: $217,285 Down payment needed ($): $0 Down payment needed (%): 0% Sean Pavone / Getty Images/iStockphoto Cincinnati Typical home value: $287,721 Down payment needed ($): $59,573 Down payment needed (%): 20.7% Davel5957 / Getty Images Austin, Texas Typical home value: $466,628 Down payment needed ($): $209,333 Down payment needed (%): 44.9% mvp64 / Getty Images/iStockphoto Las Vegas Typical home value: $427,509 Down payment needed ($): $198,306 Down payment needed (%): 46.4% Learn More: I’m an Economist: Here’s My Prediction for the Housing Market If Trump Wins the Election
TriggerPhoto / Getty Images/iStockphoto Kansas City, Missouri Typical home value: $307,032 Down payment needed ($): $76,273 Down payment needed (%): 24.8% Long_Strange_Trip_01 / Getty Images/iStockphoto Columbus, Ohio Typical home value: $315,438 Down payment needed ($): $84,215 Down payment needed (%): 26.7% Sean Pavone / Getty Images/iStockphoto Indianapolis Typical home value: $282,396 Down payment needed ($): $27,570 Down payment needed (%): 9.8% Sean Pavone / Getty Images/iStockphoto Cleveland Typical home value: $230,536 Down payment needed ($): $31,551 Down payment needed (%): 13.7% Read Next: 8 Places Where Houses Are Suddenly Major Bargains
DenisTangneyJr / Getty Images San Jose, California Typical home value: $1,631,252 Down payment needed ($): $1,320,275 Down payment needed (%): 80.9% digidreamgrafix / Getty Images/iStockphoto Nashville, Tennessee Typical home value: $446,180 Down payment needed ($): $203,325 Down payment needed (%): 45.6% Sherry V Smith / Shutterstock.com Virginia Beach, Virginia Typical home value: $351,095 Down payment needed ($): $112,962 Down payment needed (%): 32.2% Sean Pavone / Getty Images/iStockphoto Providence, Rhode Island Typical home value: $481,911 Down payment needed ($): $257,453 Down payment needed (%): 53.4% Discover More: Why Many Regret Moving to Florida Post-Pandemic
SeanPavonePhoto / Getty Images/iStockphoto Jacksonville, Florida Typical home value: $361,796 Down payment needed ($): $116,974 Down payment needed (%): 32.3% Ron and Patty Thomas / Getty Images/iStockphoto Milwaukee Typical home value: $348,439 Down payment needed ($): $348,439 Down payment needed (%): 39.3% Sean Pavone / Shutterstock.com Oklahoma City Typical home value: $235,815 Down payment needed ($): $31,331 Down payment needed (%): 13.3% Sean Pavone / Getty Images/iStockphoto Raleigh, North Carolina Typical home value: $449,514 Down payment needed ($): $152,410 Down payment needed (%): 33.9% Find Out: 5 Places in America To Retire That Are Just as Cheap as Mexico, Portugal and Costa Rica
Kruck20 / Getty Images Memphis, Tennessee Typical home value: $242,519 Down payment needed ($): $30,852 Down payment needed (%): 12.7% ferrantraite / Getty Images Richmond, Virginia Typical home value: $372,080 Down payment needed ($): $105,228 Down payment needed (%): 28.3% hstiver / Getty Images/iStockphoto Louisville, Kentucky Typical home value: $258,557 Down payment needed ($): $46,869 Down payment needed (%): 18.1% Larry Gibson / iStock.com New Orleans Typical home value: $241,940 Down payment needed ($): $46,138 Down payment needed (%): 19.1% Check Out: 3 Cities To Retire In That Are as Awesome as Honolulu and San Francisco but Way Cheaper
f11photo / Getty Images/iStockphoto Salt Lake City Typical home value: $549,373 Down payment needed ($): $251,131 Down payment needed (%): 45.7% SeanPavonePhoto / Getty Images/iStockphoto Hartford, Connecticut Typical home value: $362,763 Down payment needed ($): $129,585 Down payment needed (%): 35.7% Michael Warren / Getty Images 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.
This article originally appeared on GOBankingRates.com : The Down Payment You’d Need To Comfortably Afford a Home in These Popular Cities
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