Realtor.com just released some info on how much money future homeowners should save each day in the top 15 metro regions in the country. Not surprisingly, Detroiters don’t have to save as much as other cities.
First, here’s what they looked at:
We looked at the median home listing price in May for the country’s 15 biggest metropolitan areas and the average percentage that buyers in those areas put down on a home. Using those figures, we calculated the typical down payment for each of those cities.
Next, we figured out how much potential buyers need to save each day toward a down payment, over five- and 10-year timelines, to reach their goal. (We’re making the big assumption that home prices and down payment percentages remain unchanged over that time.)
To put that daily savings target into perspective, we tallied up how many delicious Starbucks grande Caramel Macchiatos you’d need to skip buying to reach your goal. The heavily caffeinated drinks cost $4.45, according to fastfoodmenuprices.com.
So while someone in New York City would save $38.99 per day (for five years) and in Chicago $19.44 per day, someone in Detroit only needs $13.14 per day for five years, or three cups of expensive coffee. If you’re saving for ten years, that’s $6.57 per day.
Of course, they estimate the median house price in Detroit (the metro region, it has to be) at $200,000 and the home buyer is saving for a 12% down payment.
So clearly, here are some caveats:
- There are plenty of homes under $200,000 in the city
- This doesn’t account for taxes, car insurance, renovations, etc (all the other expenses involved in living here)
- If you don’t have a down payment, Detroit Home Mortgage can help with that.
Is it important to save for your house? Of course. Do you have to give up coffee to do it? Let’s hope not.
- Here’s How Much You Need to Save Each Day to Buy a Home in 15 Top Cities [Realtor.com]
- The Price of Living in Detroit: An Open Thread [Curbed Detroit]
- Detroit Home Mortgage Announced, Buying Will Get a Little Easier [Curbed Detroit]
- What Can $125,000 Buy You in Detroit Right Now? [Curbed Detroit]