How Much Cash to Stash To Buy a Home in Dallas? $25 Every Day for 5 Years

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Streets of Detroit, Gratiot Avenue.
Gratiot Avenue, Detroit. Housing is a bargain here…

We know the toughest part about BUYING a home is scraping together enough cash for a down payment. Gone are the good old days of no money down mortgages, and you cannot borrow (or are not supposed to borrow) money for a down payment.

How does a millennial with college debt and an entry level job save up $45,000 for a down payment on a $330,000 home, which is now considered average in Dallas, at least according to I think the average of the North Texas area is around $200,000. Which would require a $25,000. down payment. But inside the loop, averages are definitely closer to $330,000.

In other words, serious cash.

The folks at, who really like it when you buy homes, number crunched the price tags for homes in America’s 15 largest urban areas. The goal was to figure out how much buyers need to save per day to purchase a home of their own in each area. The differences are interesting. If you already own a home, it’s interesting to see what it would take to buy a second home or investment property.

Dallas fared pretty well. Detroit is the cheapest place to get a home now, with average pricing at $200,000, like our hinterlands. San Francisco is ridiculous with the average home now priced at — are you ready? — $875,000.

Highway robbery!

Golden Gate Bridge - San Francisco
Golden Gate Bridge – San Francisco, home of the most expensive real estate

So looked at May median home listing prices, and the average percentages that buyers in those areas put down on a home. Then they calculated the typical down payment and figured out how much you’d have to save, and how long it would take to get there. Dallas fared in the middle, but higher than Houston.

If you really are saving for a down payment, this could help you know what to cut out as far as expenses —  one Uber ride per day? — or what you might have to earn with a part-time job or consulting work.

The other thing I found interesting was that even though some cities have pricier homes, it really doesn’t take that much more to save up for the down payment. Of course, in areas like New York City, you have to forgo the lattes, Uber, and maybe even a meal a day: stash away $39 every day for five years to save up $72,000 for that down payment.

1. New York City, N.Y.
Median home price:
Average down payment: 17.2% ($71,191 on a median-priced home)
Daily saving goal (5 years): $38.99
Daily saving goal (10 years): $19.49

The median sale price for those dreaming of a Manhattan address hit a record high of about $1.1 million in the second quarter of 2016, according to the most recent Elliman report. But those willing to buy in the city’s other boroughs—even hipster Brooklyn—as well as surrounding burbs can save bundles. (Um, not so much.)

2. Los Angeles, Calif.
Median home price:
Average down payment: 18.3% ($124,074)
Daily saving goal (5 years): $67.95
Daily saving goal (10 years): $33.97

It may feel like you need the salary of a movie star or to afford your own digs in Los Angeles. But fortunately for those not being stalked by the paparazzi, a recent report by the Los Angeles County Economic Development Corp. projects that key employment sectors will add thousands of jobs in the next two years: health care; construction; and professional, scientific, and technical services. And there’s even a booming neighborhood where tech startups and outposts of companies like Google and Yahoo are clustered—it’s known as Silicon Beach.

3. Chicago, Ill.
Median home price:
Average down payment: 13.4% ($35,496.60)
Daily saving goal (5 years): $19.44
Daily saving goal (10 years): $9.72

Homes have been flying off the market in this Midwestern metropolis, with prices steadily climbing to about 5 percent higher in May than they were a year earlier, according to a recent report. And why wouldn’t they? A (relatively) laid-back alternative to the coastal cities, Chicago boasts pioneering theater companies, 20 Michelin-starred restaurants, and an increasingly vibrant music scene. It’s the future home of the Obama Presidential Center. And while winters can be rough, come spring Chicagoans enjoy 8,100 acres of parkland—not to mention 26 miles of public beaches.

But the secret is out: A recent analysis by found that the downtown Loop neighborhood is one of the top 10 neighborhoods in the country for job growth, which is fueling household formation and new construction.

Dallas downtown skyline with Margaret hut hills bridge at night.

4. Dallas, Texas
Median home price:
Average down payment: 13.6% ($45,342.40)
Daily saving goal (5 years): $24.83

Although Dallas is in the middle of oil country (ed note, not really, but I’ll go with it), the slump in the price of crude doesn’t seem to be hurting its real estate market—at least, not yet. Home values rose 9.3 percent year over year in May, whereas the national rate was 5.9 percent, according to a recent CoreLogic report.

That makes sense as the population of the city has been growing as well (4.1 percent from July 2010 through July 2015, according to the U.S. Census Bureau), helped, no doubt, by the lower cost of living. Major companies are moving in, including Toyota, which is moving its North America headquarters from California to just outside Dallas, in Plano. The suburban city will also be home to the new regional headquarters of Fannie Mae. Oh good: get a loan!

5. Houston, Texas
Average down payment:
 12.7% ($42,532.30)
Daily saving goal (5 years): $23.29
Daily saving goal (10 years): $11.65

Houston’s real estate market, on the other hand, got hit much harder by the turmoil in the oil industry. But the number of homes sold began to climb again in May, although year-over-year prices bucked the national trend by staying flat, according to the Houston Association of REALTORS®.

Still, the city isn’t all about oil—it’s also home to 26 Fortune 500 companies, and a analysis last year found it was one of the top U.S. cities drawing millennial would-be home buyers.

6. Philadelphia, Pa.
Median home price:
Average down payment: 12.1% ($28,435)
Daily saving goal (5 years): $15.57
Daily saving goal (10 years): $7.79

Buying a home in the City of Brotherly Love is more affordable than in many of the other big Northeastern cities on this list, but here’s the thing: It doesn’t look like it will stay that way for long. Like the rest of the country, property prices are steadily rising.

They jumped nearly 22 percent this year alone, Kevin Gillen, senior research fellow at Drexel University’s Lindy Institute for Urban Innovation, told the Philadelphia Inquirer.

“The average Philadelphia home has achieved a new all-time high in value,” Gillen told the paper. But rest assured: It won’t approach New York levels anytime soon.

7. Washington, DC
Median home price:
Average down payment: 12.6% ($55,427.40)
Daily saving goal (5 years): $30.35
Daily saving goal (10 years): $15.18

Prices haven’t been rising quite so high in the nation’s capital as of late, and that has a lot to do with the uncertainty surrounding the presidential election, say local real estate agents. After all, whoever wins the Oval Office will determine who is placed in more than a few jobs in the city.

That’s a big reason why prices rose just 2.1 percent annually in the area in May. And by the time many aspiring homeowners save up that down payment and purchase a home, Hillary Clinton or Donald Trump might be gunning for a second term—and who knows what sort of impact that will have on real estate values!

8. Miami, Fla.
Median home price:
Average down payment: 14.1% ($49,349.99)
Daily saving goal (5 years): $27.03

Miami is known for its nonstop nightlife and Latin culture—the 2010 U.S. Census counted 70 percent of its residents as Hispanic. Located at the tip of the continental U.S., it’s no surprise that it’s known as the Gateway to the Americas, drawing people from across Latin America. The recent restoration of diplomatic ties—and soon, commercial flights—with nearby Cuba is sure to make its impact felt on the place many still call the Magic City.

But the number of sales here dropped about 10.4 percent annually in May, according to data from the Miami Association of REALTORS® provided to The Miami Herald.

Meanwhile, prices shot up as a strong dollar discouraged foreign buyers from snapping up those luxury condos at the same time that there are fewer foreclosures for investors and flippers to snap up, according to the Herald.

9. Atlanta, Ga.
Median home price:
Average down payment: 10% ($26,990)
Daily saving goal (5 years): $14.78
Daily saving goal (10 years): $7.39

Putting down roots in Atlanta, with its lower cost of living, burgeoning film industry, and usually pleasant weather, is still relatively affordable. But it may not stay that way for much longer.

The cost of purchasing a residence jumped 6.5 percent in April from a year earlier, above the national average, according to the latest S&P/Case-Shiller Home Price Indices report. That’s largely due to the lack of properties on the market at a time when more companies are moving down to the area, bringing a new crop of future Atlantans with them.

10. Boston, Mass.
Median home price:
Average down payment: 16.4% ($73,783.59)
Daily saving goal (5 years): $40.41

Home prices are steadily rising in the birthplace of the American Revolution—at the annual rate of about 5.7 percent in April compared with the same time a year earlier, according to the S&P/Case-Shiller report. That puts it right around the national average.

But hold on: Standard & Poor’s predicted in January that Boston home values will jump 24 percent by 2020! While the situation isn’t quite as bad as taxation without representation, lovers of the home of the Red SoxThe Pixies, The Freedom Trail, and Revere Beach, the country’s first public coastline park, should probably get a head start on saving as soon as possible.

11. San Francisco, Calif.
Median home price:
Average down payment: 21.8% ($190,750)
Daily saving goal (5 years): $104.46
Daily saving goal (10 years): $52.23

Holy moly! There’s no easy way to say this: Buying an abode in San Francisco ain’t cheap, so if you’re not well-off, you’d better start playing the lottery now. Some good news: While it remains one of the hottest real estate markets in the U.S., in June we started to see higher-priced homes flying off the market just a wee bit slower than before—perhaps a sign that the tide is finally turning.

Still, buyers shouldn’t hold their breath waiting for prices to soften on the city’s “affordable” residences. It might be a better plan to work on creating the next Snapchat. How hard could it be?

12. Detroit, Mich.
Median home price:
Average down payment: 12% ($24,000)
Daily saving goal (5 years): $13.14
Daily saving goal (10 years): $6.57

Buying a home in the former automotive manufacturing hub won’t set buyers back too much these days. Also, according to our calculations, it’s one of the U.S. cities where you can pay your mortgage off the fastest. Even so, interested buyers might want to get moving sooner rather than later.

In recent years, Detroit has been experiencing a resurgence as more startups, shops, and restaurants are moving in. That’s likely to lead to higher prices, so cash-strapped buyers should buy a home while they still can.

13. Phoenix, Ariz.
Median home price:
Average down payment: 11.9% ($36,771)
Daily saving goal (5 years): $20.14
Daily saving goal (10 years): $10.07

Plenty of buyers may still be able to swing the home prices in Arizona’s capital area, but they are going up—prices rose about 5.5 percent, according to the S&P/Case-Shiller report.

Still, you’ll get more bounce for the ounce than elsewhere. Our analysis found that Phoenix-area municipalities of Gilbert, Chandler, and Scottsdale offer some of the largest homes in America, and they’re likely to be relatively new construction as well. Speaking of Gilbert, it also made our list of boom towns with notable job growth, while Chandler is home to the satellite offices of several major tech companies.

14. Seattle, Wash.
Median home price:
Average down payment: 13.3% ($59,185)
Daily saving goal (5 years): $32.41
Daily saving goal (10 years): $16.21

Home prices here have been rising far faster than the national average. Seattle prices shot up 10.7 percent in April compared to the same time a year earlier, according to the S&P/Case-Shiller report.

Bidding wars have also been driving up the cost of homeownership, as about three-quarters of Seattle-area residences have been receiving multiple offers, according to a recent Seattle Times article. In a testament to how crazy it’s become, last month, more than 100 people were lined up, some of them having slept there overnight, to plunk down deposits on condos that haven’t even broken ground yet, according to the Times.

15. Minneapolis, Minn.
Median home price:
Average down payment: 11.2% ($32,928)
Daily saving goal (5 years): $18.03
Daily saving goal (10 years): $9.02

Even in the reasonably priced twin cities of Minneapolis and Saint Paul, prices rose 5.7 percent year over year in May—hitting their highest levels since well before the housing bubble burst in June 2006, according to the latest Minneapolis Area Association of REALTORS® report. And they can only be expected to keep on climbing.




Candy Evans

A real estate muckraker, Candy Evans is one of the nation’s leading real estate reporters. She is also the North Texas real estate editor for, CultureMap Dallas, Modern Luxury Dallas, & the Katy Trail Weekly. Candy has written for Joel Kotkin’s The New Geography, Inman Real Estate News, plus a host of national sites. Constantly breaking celebrity real estate news, she scooped former president George W. Bush's Dallas home in 2008. She is the founder and publisher of her signature, and, devoted to the vacation home market. Her verticals have won many awards, including Best Blog by the venerable National Association of Real Estate Editors, one of the nation’s oldest and most prestigious journalism associations. Candy holds an active Texas real estate license but does not sell. She is on the Board of Directors of Braemar Hotels & Resorts (BHR).

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