Editor’s Word: This story initially appeared on Inspection Assist Community.
Two years because the COVID-19 pandemic started, the U.S. housing market stays within the midst of a historic frenzy.
With low rates of interest, sturdy financial savings and funding returns all through a lot of the pandemic, and the millennial technology reaching peak home-buying age, the market has seen a rush of consumers competing for properties and driving costs to report heights. And whereas rate of interest hikes over the rest of 2022 may discourage would-be consumers, the U.S. additionally faces a scarcity of housing provide that’s unlikely to be resolved anytime quickly.
In accordance with knowledge from mortgage backer Freddie Mac, the U.S. has a deficit of three.8 million housing models. And with world provide chains nonetheless recovering from pandemic disruptions and inflation driving prices greater, new housing inventory is prone to be extra time-consuming and dearer to construct for the foreseeable future.
Nationwide, the proportion of consumers who put greater than 20% down rose from 43.5% in 2019 to 53.3% in 2020. And these bigger down funds are particularly widespread in dearer, aggressive housing markets. In 24 of the 25 markets with the very best median property values within the U.S., a majority of homebuyers have made down funds of larger than 20%.
The pattern towards presents with extra money down on the mortgage may put homeownership additional out of attain for youthful and lower-income consumers. Older and higher-income individuals are extra prone to have larger financial savings or present fairness to place towards a house mortgage.
To find out the metros the place homebuyers put down probably the most down on a purchase order, researchers at Inspection Assist Community analyzed the newest knowledge from the Federal Monetary Establishments Examination Council’s Dwelling Mortgage Disclosure Act. The researchers ranked metro areas by the proportion of consumers placing greater than 20% down. Extra on our methodology is on the finish.
Listed below are the U.S. metropolitan areas the place individuals are placing probably the most down on their house purchases.
15. Windfall-Warwick, RI-MA
- Proportion of consumers placing greater than 20% down: 42.8%
- Median down fee quantity: $60,000
- Median mortgage quantity: $285,000
- Median property worth: $345,000
- Median rate of interest: 3.250%
- Median down fee to revenue share: 50.5%
14. Salt Lake Metropolis, UT
- Proportion of consumers placing greater than 20% down: 43.1%
- Median down fee quantity: $70,000
- Median mortgage quantity: $325,000
- Median property worth: $395,000
- Median rate of interest: 3.250%
- Median down fee to revenue share: 62.5%
13. Denver-Aurora-Lakewood, CO
- Proportion of consumers placing greater than 20% down: 45.1%
- Median down fee quantity: $80,000
- Median mortgage quantity: $395,000
- Median property worth: $485,000
- Median rate of interest: 3.125%
- Median down fee to revenue share: 65.6%
12. Portland-Vancouver-Hillsboro, OR-WA
- Proportion of consumers placing greater than 20% down: 46.4%
- Median down fee quantity: $80,000
- Median mortgage quantity: $375,000
- Median property worth: $455,000
- Median rate of interest: 3.125%
- Median down fee to revenue share: 67.1%
11. Austin-Spherical Rock-Georgetown, TX
- Proportion of consumers placing greater than 20% down: 46.4%
- Median down fee quantity: $70,000
- Median mortgage quantity: $295,000
- Median property worth: $375,000
- Median rate of interest: 3.125%
- Median down fee to revenue share: 47.6%
10. Seattle-Tacoma-Bellevue, WA
- Proportion of consumers placing greater than 20% down: 47.0%
- Median down fee quantity: $110,000
- Median mortgage quantity: $475,000
- Median property worth: $605,000
- Median rate of interest: 3.125%
- Median down fee to revenue share: 77.4%
9. Sacramento-Roseville-Folsom, CA
- Proportion of consumers placing greater than 20% down: 47.8%
- Median down fee quantity: $90,000
- Median mortgage quantity: $385,000
- Median property worth: $475,000
- Median rate of interest: 3.125%
- Median down fee to revenue share: 66.2%
8. Riverside-San Bernardino-Ontario, CA
- Proportion of consumers placing greater than 20% down: 47.9%
- Median down fee quantity: $80,000
- Median mortgage quantity: $355,000
- Median property worth: $455,000
- Median rate of interest: 3.125%
- Median down fee to revenue share: 60.6%
7. Miami-Fort Lauderdale-Pompano Seashore, FL
- Proportion of consumers placing greater than 20% down: 48.4%
- Median down fee quantity: $60,000
- Median mortgage quantity: $305,000
- Median property worth: $375,000
- Median rate of interest: 3.250%
- Median down fee to revenue share: 51.0%
6. Boston-Cambridge-Newton, MA-NH
- Proportion of consumers placing greater than 20% down: 48.5%
- Median down fee quantity: $100,000
- Median mortgage quantity: $425,000
- Median property worth: $545,000
- Median rate of interest: 3.000%
- Median down fee to revenue share: 70.0%
5. New York-Newark-Jersey Metropolis, NY-NJ-PA
- Proportion of consumers placing greater than 20% down: 51.6%
- Median down fee quantity: $100,000
- Median mortgage quantity: $405,000
- Median property worth: $525,000
- Median rate of interest: 3.125%
- Median down fee to revenue share: 66.7%
4. San Diego-Chula Vista-Carlsbad, CA
- Proportion of consumers placing greater than 20% down: 53.8%
- Median down fee quantity: $140,000
- Median mortgage quantity: $515,000
- Median property worth: $675,000
- Median rate of interest: 3.125%
- Median down fee to revenue share: 88.0%
3. Los Angeles-Lengthy Seashore-Anaheim, CA
- Proportion of consumers placing greater than 20% down: 56.2%
- Median down fee quantity: $170,000
- Median mortgage quantity: $585,000
- Median property worth: $755,000
- Median rate of interest: 3.125%
- Median down fee to revenue share: 96.1%
2. San Francisco-Oakland-Berkeley, CA
- Proportion of consumers placing greater than 20% down: 60.9%
- Median down fee quantity: $250,000
- Median mortgage quantity: $725,000
- Median property worth: $995,000
- Median rate of interest: 3.000%
- Median down fee to revenue share: 109.1%
1. San Jose-Sunnyvale-Santa Clara, CA
- Proportion of consumers placing greater than 20% down: 66.8%
- Median down fee quantity: $290,000
- Median mortgage quantity: $765,000
- Median property worth: $1,155,000
- Median rate of interest: 2.990%
- Median down fee to revenue share: 120.0%
Methodology
To find out the metros that put down probably the most down on their house purchases, researchers at Inspection Assist Community analyzed the newest knowledge from the Federal Monetary Establishments Examination Council’s Dwelling Mortgage Disclosure Act. Solely standard, house buy loans that originated in 2020 had been thought of within the evaluation. The researchers ranked metro areas by the proportion of consumers placing greater than 20% down. Within the occasion of a tie, the metro with the bigger median down fee quantity was ranked greater. To enhance relevance, solely metropolitan areas with a minimum of 100,000 residents had been included. Moreover, metros had been grouped into cohorts based mostly on inhabitants dimension: small (100,000–349,999), midsize (350,000–999,999), and huge (1,000,000 or extra).
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