Down payment for new home can be barrier
Based on medianpriced homes, Houstonians saving for a 20 percent down payment on a new home need to scrape up the equivalent of more than half the region’s median income, according to analytics firm Zillow.
The figure comes from the Zillow Group’s analysis of housing affordability, citing potential homebuyers’ concerns that saving for a down payment is a barrier to ownership. The barriers are highest for first-time homebuyers, most of whom don’t have equity and often must save while paying high rents.
Taking Zillow’s median home value for metro Houston — $176,000 — the $35,200 required for a 20 percent down payment is equal to 57 percent of the region’s median income, $62,099.