However, not all metro areas are equal, and in some the median renter can save up enough to become a homeowner in less than five years. With reduced savings times, these cities could be hot markets for mortgage originations.
"Cities that require less time for renters to become homeowners can be particularly good options for the increasing number of millennials looking to purchase property while facing other financial challenges like raising a family or
From Texas to Ohio, here's a look at the top 15 housing markets providing the shortest timelines for renters to buy a home,
For the analysis, SmartAsset weighed five factors in each of the largest 100 U.S. cities: Median income, effective income tax rate, median annual rent, median home value and average closing costs in each city. Data comes from the Census Bureau's 2017 American Community Survey.
The fintech company used the median income, local tax rate and median annual rent to calculate how much income a renter would have left over after paying income taxes and for housing. The study operated under the assumption renters would save 40% of their post-tax and post-rent income annually. Then the timeframes were calculated based on how long it'd take the savings to cover a 20% down payment plus the average closing costs on a median-priced house in each city.
No. 15 Buffalo, N.Y.
Income after taxes and rent: $14,398
Upfront home costs: $24,759
No. 14 Arlington, Texas
Income after taxes and rent: $21,700
Upfront home costs: $37,101
No. 13 Indianapolis, Ind.
Income after taxes and rent: $18,109
Upfront home costs: $30,165
No. 12 Kansas City, Mo.
Income after taxes and rent: $20,072
Upfront home costs: $33,232
No. 11 Houston, Texas
Income after taxes and rent: $23,281
Upfront home costs: $38,189
No. 10 Fort Worth, Texas
Income after taxes and rent: $23,315
Upfront home costs: $37,421
No. 9 Garland, Texas
Income after taxes and rent: $22,320
Upfront home costs: $35,815
No. 8 Omaha, Neb.
Income after taxes and rent: $21,666
Upfront home costs: $34,630
No. 7 Cleveland, Ohio
Income after taxes and rent: $10,931
Upfront home costs: $17,424
No. 6 Memphis, Tenn.
Income after taxes and rent: $14,510
Upfront home costs: $23,044
No. 5 Detroit, Mich.
Income after taxes and rent: $9,334
Upfront home costs: $14,407
No. 4 Fort Wayne, Ind.
Income after taxes and rent: $17,484
Upfront home costs: $26,214
No. 3 Columbus, Ohio
Income after taxes and rent: $22,953
Upfront home costs: $33,715
No. 2 Irving, Texas
Income after taxes and rent: $30,618
Upfront home costs: $41,015
No. 1 Toledo, Ohio
Income after taxes and rent: $15,313
Upfront home costs: $18,908