How Much You Should Save Each Month for a Down Payment, By State
When it comes to buying a house, the financials can be overwhelming. That’s why a little bit of preparation or saving goes a long way—and a lot of preparation and saving goes even further.
If you’re thinking about buying a home, one of the biggest costs you’ll be hit with is the down payment. Instead of just saving “a lot of money” to make it work (or if you think the number is too big—none at all), set a monthly savings goal that you know will be used explicitly to purchase your new house. If you commit to setting aside a given sum every month, that will add up fast and make it easier for you to close on your dream home.
Not sure how much that monthly savings goal should be? Well, the amount you should save depends on where you live. Pricier, more competitive markets—like New York and San Francisco—may require a larger down payment to make your offer more attractive to the seller. On average, though, a down payment is roughly 20 percent of the home’s price, so we looked at median home prices in every state (according to Trulia) to get an accurate read at how much you should be saving. Then, we divided that cost by 78 (which is how many months are in six and a half years, the average time it takes an American to save up for a down payment). This isn’t the most scientific method, but it does break down that huge, scary number in more realistic terms (and Douglas Boneparth, president of Bone Fide Wealth, a financial advisor firm geared towards helping millennials, gives the method a thumbs up).
Given that you’ll be stashing a pretty large sum, call on a financial planner to figure out the most productive ways to store your money while you’re not using it. Since you’re going to be storing it for years, you can make that money work for you in the meantime.
State | Median Home Price | Down Payment | Monthly Savings Plan |
Alabama | $171,500 | $34,300 | $440 |
Alaska | $267,404 | $53,480 | $686 |
Arizona | $225,000 | $45,000 | $577 |
Arkansas | $156,000 | $31,200 | $400 |
California | $462,000 | $92,400 | $1,185 |
Colorado | $331,000 | $66,200 | $849 |
Connecticut | $253,500 | $50,700 | $650 |
Delaware | $210,000 | $42,000 | $539 |
Florida | $218,000 | $43,600 | $559 |
Georgia | $193,000 | $38,600 | $495 |
Hawaii | $442,500 | $88,500 | $1,135 |
Idaho | $349,000 | $69,800 | $895 |
Illinois | $212,000 | $42,400 | $544 |
Indiana | $190,843 | $38,168 | $490 |
Iowa | $157,000 | $31,400 | $403 |
Kansas | $187,649 | $37,529 | $482 |
Kentucky | $170,000 | $34,000 | $436 |
Louisiana | $232,610 | $46,522 | $597 |
Maine | $275,717 | $55,143 | $707 |
Maryland | $379,000 | $75,800 | $972 |
Massachusetts | $150,000 | $30,000 | $385 |
Michigan | $164,000 | $32,800 | $421 |
Minnesota | $240,000 | $48,000 | $616 |
Mississippi | $195,390 | $39,078 | $501 |
Missouri | $204,506 | $40,901 | $525 |
Montana | $314,959 | $62,991 | $808 |
Nebraska | $178,000 | $35,600 | $457 |
Nevada | $249,300 | $49,860 | $640 |
New Hampshire | $245,000 | $49,000 | $629 |
New Jersey | $290,000 | $58,000 | $744 |
New Mexico | $254,798 | $50,959 | $654 |
New York | $430,000 | $86,000 | $1,103 |
North Carolina | $210,000 | $42,000 | $539 |
North Dakota | $226,863 | $45,372 | $582 |
Ohio | $154,900 | $30,980 | $398 |
Oklahoma | $150,000 | $30,000 | $385 |
Oregon | $315,000 | $63,000 | $808 |
Pennsylvania | $191,000 | $38,200 | $490 |
Rhode Island | $256,000 | $51,200 | $657 |
South Carolina | $181,500 | $36,300 | $466 |
South Dakota | $177,500 | $35,500 | $456 |
Tennessee | $190,000 | $38,000 | $488 |
Texas | $320,067 | $64,013 | $821 |
Utah | $440,946 | $88,189 | $1,131 |
Vermont | $325,000 | $65,000 | $834 |
Virginia | $297,500 | $59,500 | $763 |
Washington | $332,719 | $66,543 | $854 |
West Virginia | $136,500 | $27,300 | $350 |
Wisconsin | $197,000 | $39,400 | $505 |
Wyoming | $291,855 | $58,371 | $749 |