Down pay­ment for new home can be bar­rier

Houston Chronicle - - BUSINESS -

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.

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