A typical renter household in the Dallas area would need about 12 years to save enough for the down payment and closing costs on a starter home, according to a report released Thursday. In 2019, the same calculation came to seven years.
The Julian Bond Institute, part of the nonprofit Center for Responsible Lending, ran the numbers for the 10 largest U.S. metropolitan areas using each area's median renter income and local starter home prices. Every one showed a sizable jump since 2019. Dallas came in second-lowest, ahead of only Houston at 11 years. Los Angeles was highest at 24.
The national picture
Across the country, the report puts the wait for a median-income renter household at 16 years, double the eight years the group found in 2019. For middle-income households, roughly those earning $50,000 to $120,000, it is now 12 years. For teachers, nurses, EMTs, firefighters and police officers, the report found the wait has at least doubled and now runs 10 to 13 years.
The wait is 21 years for the typical Black renter household.
The figures assume a 3.5% down payment, the minimum for a Federal Housing Administration loan, on a starter home priced at 80% of the median existing-home sale price. Nationally that works out to $335,574. Closing costs include lender fees, the first year of homeowners insurance and money set aside for property taxes. The authors note that first-time buyers on average put down more, about 10%.
