The Birmingham Metro Area ranks high for potential home buyers saving for down payments. The New York Times recently ranked Birmingham and its suburbs third among the best places for those saving to purchase a home.
A recent Zillow study shows a home buyer making the national median income of $82,156 would need to save nearly a decade to afford a down payment in most metro markets right now. However, that’s not the case in the Birmingham. The typical home price in this area averages $255,000 and requires an average down payment of $19,000.
Along with Birmingham, the following cities, rank among the top ten most-friendly for saving down payments.
- Pittsburgh, PA
- St. Louis, MO
- Birmingham, AL
- Detroit, MI
- Indianapolis, IN
- Oklahoma City, OK
- Cleveland, OH
- Memphis, TN
- Louisville, KY
- New Orleans, LA
Down Payments & The Housing Market Right Now
According to Zillow, in today’s market with high and volatile interest rates and rising home values, a larger down payment can be crucial for making a home affordable. In most of America’s top metro areas, experts estimate that a down payment of over $100,000 is needed to afford a mortgage. Cities like Sacramento, Boston, New York, Miami, Los Angeles, and Seattle see even higher down payments for properties.
Despite these challenges, many people manage to buy homes with the help of generational wealth. The Zillow study found that 43 percent of buyers last year received assistance with their down payment from family or friends. This support can significantly reduce the time required to save for a down payment and make homeownership more accessible.
As for the market outlook, experts do not predict much relief soon. Instead, they suggest that first-time buyers who can afford to buy should not wait. Real estate experts argue that buying a home remains cheaper than renting in most American cities, including the Birmingham Metro Area. This makes the present a strategic time for potential buyers to enter the market and secure their homes before conditions potentially worsen.
