Article courtesy of Gary Buys Houses.
10 Slowest States to Save for a House Down Payment:
- Michigan residents can save for a house down payment in 39 years and 8 months, making it the tenth-hardest state to save
- In the state, the median home value is $225,900 and the typical renting household earns $42,284 a year, allowing for potential savings of just $66 a month after bills
- Maine, Louisiana, West Virginia and Mississippi have no potential for savings, being in the minus each month.
New findings reveal Michigan residents face the tenth-longest wait to save enough for a 15% house down payment, averaging 39 years and 8 months.
The property experts at garybuyshousesar.com analyzed official data from the Census Bureau, Bureau of Economic Analysis, and National Low Income Housing Coalition to determine exactly how many years and months typical renting households in each state would need to save for a down payment.
Michigan’s Findings
In Michigan, it takes a whopping 39 years and 8 months to save for a 15% down payment, the tenth-longest time in the nation. The median home value is $236,100 and the typical renting household earns $42,963 a year, allowing for potential savings of just $74 a month after bills.
For Michigan residents exploring creative paths to homeownership or real-estate investment, Michigan DSCR loan programs can offer a way to qualify based on property cash flow rather than personal income—an approach that helps borrowers scale portfolios even when saving large down payments is challenging.
Top 10 ranking for slowest down payment savings period
| Rank | State | Time to Save Down Payment |
| 1 | Maine | Never |
| 2 | Louisiana | Never |
| 3 | West Virginia | Never |
| 4 | Mississippi | Never |
| 5 | Vermont | 86 years, 11 months |
| 6 | Florida | 63 years, 9 months |
| 7 | Alabama | 57 years, 7 months |
| 8 | Kentucky | 46 years, 4 months |
| 9 | Indiana | 42 years, 11 months |
| 10 | Michigan | 39 years, 8 months |
Maine, along with Louisiana, West Virginia, and Mississippi, has no potential for savings. After covering essentials like rent, healthcare, groceries, and transportation, residents are left in the negative.
In Maine, the typical renting household earns $42,627 a year, the median home costs $310,700, and the average renter ends up $92 short each month.
In Louisiana, with a median home price of $215,600 and typical renter earnings of $36,125 a year, the monthly shortfall is $195.
In West Virginia, median home prices are $163,700, renters earn $32,728 annually, and they’re left $243 in the red each month.
Mississippi fares slightly better, but still negative, with median home prices at $169,800, average renter earnings of $34,656 a year, and a $25 monthly deficit.
Vermont claimed fifth place. Renters there have the potential to save enough for a house down payment in 86 years and 11 months.
Florida took sixth with 63 years and 9 months. Alabama ranked seventh at 57 years and 7 months.
Positions eight through ten were Kentucky at 46 years, 4 months, Indiana at 42 years, 11 months and Michigan at 39 years, 8 months.
Top 10 ranking for fastest down payment savings period
| Rank | State | Time to Save Down Payment |
| 1 | Virginia | 6 years, 7 months |
| 2 | Alaska | 6 years, 11 months |
| 3 | Maryland | 7 years, 7 months |
| 4 | North Dakota | 9 years, 0 months |
| 5 | Washington | 9 years, 11 months |
| 6 | Kansas | 10 years, 4 months |
| 7 | Texas | 10 years, 6 months |
| 8 | Utah | 10 years, 7 months |
| 9 | Iowa | 12 years, 1 month |
| 9 | Nebraska | 12 years, 1 month |
| 9 | Illinois | 12 years, 1 month |
| 10 | Wisconsin | 12 years, 2 months |
| 10 | Idaho | 12 years, 2 months |
On the other side of the scale, Virginia has the potential to save a maximum of $728 monthly after paying for basics like rent, healthcare, groceries, and transportation. Those fortunate enough to save can do so much faster than anywhere else. The median house in the state costs $382,900, allowing motivated savers to accumulate the $57,435 needed for a 15% down payment in as little as 6 years and 7 months.
Alaska claimed second place. Renters there have the potential to save enough for a house down payment in 6 years and 11 months. Alaska’s strong second place comes from the typical renting household earning $63,740 yearly while facing modest rent bills, creating $630 monthly saving potential. Residents in Alaska are also fortunate enough to receive an annual dividend payment from the Alaska Permanent Fund (PFD). This is a fund that shares the profits of the state’s oil and gas revenue and in 2024 this amounted to $1,702.
Maryland took third with 7 years and 7 months. North Dakota ranked fourth at 9 years flat. Washington completed the top five at 9 years and 11 months.
Positions six through eight were Kansas at 10 years, 4 months, Texas at 10 years, 6 months, Utah at 10 years, 7 months, and performed strongly too, landing spots in the top 8.
This was followed by Iowa, Nebraska and Illinois in the joint ninth spot with 12 years and 1 month, and then Wisconsin and Idaho in the joint tenth spot with 12 years and 2 months.
Commenting on the study, Gary Spickes, Chief Investment Officer at garybuyshousesar.com, said,
“Housing costs vary dramatically between states. Virginia lets disciplined savers achieve homeownership in under seven years. Other states make this goal impossible without major income increases.”
“The worst-ranked states show a troubling pattern. Take Mississippi and West Virginia. Houses cost far less than California or New York. But renter incomes run so low they can’t even cover basics.”
Methodology
The research used a 15% deposit requirement, applied a 4% interest rate, and calculated with 20-year mortgage terms, while assuming renters could save half their income remaining after covering all essential living costs.
Here’s how the analysis was conducted:
Median Home Value:
The median home price in each state was sourced from the ACS. A 15% down payment was calculated by multiplying this value by 0.15.
Renter Household Income:
Median annual income for renting households was taken from the NLIHC.
Essential Living Costs:
Average annual costs for rent, healthcare, groceries, and transportation were sourced from BEA data and subtracted from income to estimate remaining disposable income.
Saving Assumption:
It was assumed renters could save 50% of their disposable income (after paying essential living costs).
Time to Save:
The required down payment amount was divided by the estimated monthly savings to determine how many years and months it would take to save.
Ranking:
All 50 states were ranked by the estimated time required to save for a 15% down payment on a median-priced home.
Sources
- The U.S. Census Bureau (American Community Survey) – https://data.census.gov/table/
ACSDP1Y2023.DP04?q=median% 20home%20value%20&g=010XX00US$ 0400000&y=2023&moe=false&tp= true - The Bureau of Economic Analysis (Personal Consumption Expenditure) – https://apps.bea.gov/itable/
- The National Low Income Housing Coalition (Out of Reach Report) – https://nlihc.org/oor