

Fast-Track to Homeownership: Top 5 U.S. Cities Where You Can Save for a 20% Down Payment in Under 4 Years
Achieving the American dream of homeownership often hinges on a big down payment. In many parts of the country, this can be daunting. A recent Realty Hop report highlights five U.S. cities. In them, buyers can save for a 20% down payment in under four years. This creates a much lower barrier to entering the housing market.
1. Detroit, Michigan
Topping the list is Detroit, where the median list price for homes stands at $85,000. An average family saves 20% of their income. It would take about 2.25 years to save the $17,000 needed for a down payment. Detroit’s affordability comes from its rich history. It was the U.S. auto industry’s epicenter. It’s also due to ongoing urban revitalization efforts.
2. Cleveland, Ohio
In Cleveland, the median home price is $139,000, translating to a 20% down payment of $27,800. Families saving 20% of their annual income can expect to reach this goal in about 3.55 years. Cleveland’s diverse economy and culture attract budget-conscious homebuyers. They want urban amenities without high costs.
3. Kansas City, Missouri
Kansas City offers a median home price of $210,000, requiring a down payment of $42,000. With diligent saving, families can accumulate this amount in under four years. The city’s tech sector and arts scene make it a desirable place to settle.
4. Milwaukee, Wisconsin
In Milwaukee, the median home price is $160,000, necessitating a $32,000 down payment. Families saving 20% of their income can achieve this in approximately 3.8 years. Milwaukee’s mix of city and suburb, plus its Lake Michigan shore, offers a balanced life to home buyers.
5. Wichita, Kansas
Rounding out the list is Wichita, where the median home price is $150,000, leading to a required down payment of $30,000. By setting aside 20% of their annual income, families can save this amount in about 3.75 years. Wichita’s strong aerospace sector and low cost of living attract first-time homebuyers.
Contrasting High-Barrier Cities
In stark contrast, cities like Los Angeles present significant challenges for prospective homeowners. With a median home price of $1.2 million, it would take an average family about 15.74 years to save for a $240,000, 20% down payment. This assumes they save 20% of their annual income each year.