Homeownership is an essential aspect of the economy as it significantly impacts individuals, families, and communities.
It is a means of creating wealth and a source of stability and security. The housing market is closely tied to the economy's overall health, and a strong housing market can help boost economic growth.
According to the U.S. Census Bureau, owning property is associated with a median net wealth nearly 75 times greater than renting.
But here's the downside: Homeownership is expensive.
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Finding an affordable home in the Dallas-Fort Worth Metroplex may take longer than expected due to the high cost of living in the area.
According to RealtyHop, which examined the years required to save up for a down payment in the top 100 most populated cities in the U.S., a family in Dallas would need to save for 6.33 years to afford a $81,000 down payment on a home.
The report also found that Dallas has a median list price of $405,000, and households must have an overall income of $63,985.
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In Irving, it takes, on average, 5.01 years for families to save up for a home. In a city with a median list price of $384,250, buyers will also need a household income of $76,686 and must pay at least a $76,850 down payment.
The median household income in Plano currently sits at $105,679. With a median asking price of $525,000 and an annual savings of $21,136, it will take Plano homebuyers 4.97 years for a $105,000 down payment.
With a median home price of $345,000 and a median household income of $72,726, it will take a typical Fort Worth family 4.74 years to meet the 20% down payment requirement of $69,000.
Arlington has a median home price of $335,000 and a household income of $71,736. This means families must save for 4.67 years to pay a minimum down payment of $67,000.
Lastly, Garland has a median household income of $71,044 and a median asking price of $330,000. Buyers would need to save 4.65 years with an annual savings of $14,209 and a down payment of $66,000.
KEY FINDINGS
Which U.S. has the best and worst barriers to homeownership?
Los Angeles is the city with the worst barrier to homeownership nationwide. It will take average families 15.74 years to save enough money to meet the requirements for a conventional loan, according to the study. The "City of Angels" has a median asking price of $1,200,000, and homebuyers would have to set aside 20% of their income, ranging between $15,249 to $1,271 monthly for the down payment.
The study also showed California outranked all the other states with the number of years needed to purchase a home. Six of its cities were in the top 10, including Los Angeles, Irvine, San Diego, Long Beach, Anaheim, and Santa Ana.
Detroit has been ranked the city with the best barrier to homeownership. Families will only need 2.25 years to save up for a $17,000 down payment if they decide to put aside 20% of their household income each year. The city has a median price of $85,000, and households only need an income of $37,761.
Austin, Laredo, Houston, El Paso, Lubbock, Corpus Christi, and San Antonio were also on the list.
RealtyHop said analysts calculated the median list price by city using over 2.3 million residential for-sale listings on its site between July 2023 and December 2023.
The complete report, methodology, and tips for getting a mortgage can be seen on RealtyHop's site.
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