How much do Texas home buyers need for a down payment? Think six figures, says Zillow
If you’re in the market to buy a home in Texas, the down payment will cost you at least six figures.
Zillow recently released a report revealing the necessary down payment costs home buyers need to pay to comfortably afford a typical U.S. home across major metro areas and how long it would take to save that amount.
According to the report, the average down payment cost for someone making the median income is nearly $127,750 for a home valued at about $360,000:
Typical home value in the US: $360,681
Down payment needed (cost) in the US: $127,743
Down payment needed (percentage) in the US: 35.4 %
Years to save in the US: 12
Average down payment assistance in the US: $17,000
In comparison, home buyers in Dallas would need to make a $152,586 down payment based on the typical home value, mortgage rates, property taxes, homeowners’ insurance and maintenance.
Typical home value in Dallas: $381,104
Down payment needed (cost) in Dallas: $152,586
Down payment needed (percentage) in Dallas: 29.8%
Years to save in Dallas: 12.9
Average down payment assistance in Dallas: $12,670
In Austin, the cost is even more expensive for prospective home buyers, according to the report:
Typical home value in Austin: $466,628
Down payment needed (cost) in Austin: $209,333
Down payment needed (percentage) in Austin: 44.9%
Years to save in Austin: 14.7
Average down payment assistance in Austin: $15,303
Houston, according to the Zillow analysis, is the most affordable place to buy a home, per the metrics.
Typical home value in Houston: $310,707
Down payment needed (cost) in Houston: $76,825
Down payment needed (percentage) in Houston: 24.7%
Years to save in Houston: 7.9
Average down payment assistance in Houston: $10,618
Texans say housing is unaffordable
The figures seemingly support the opinion of Texans who, in response to a University of Houston and Texas Southern University poll, say there is a housing affordability crisis.
The poll, conducted in late July, found that 90 percent of respondents indicated that housing affordability was a problem where they lived.
About 44% of residents surveyed considered it to be “a big problem,” and 46% said it was “somewhat of a problem.”
Some 56% of Texans polled said that the cost of housing represents a source of financial strain for them and their family, with 38% identifying the cost of housing as a major source of strain and 18% identifying the cost of housing as a minor source of financial strain, according to the poll.
“Among Texas homeowners for whom housing costs create a financial strain, the proportion for whom the respective expense represents a major source of financial strain,” authors of the poll stated.