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Ann Arbor named one of the best places to save for future homeownership

Renters can save up for downpayment in 2 years, 4 months

(Pixabay)

ANN ARBOR, Mich. – Potential homeowners in Ann Arbor have the fifth-fastest rate for saving money out of 174 metro areas across the United States according to RentCafe.

The apartment search website looked at metropolitan areas around the country to determine where renters were able to quickly save up for a downpayment.

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Data from the U.S. Census Bureau, Bureau of Labor Statistics and Zillow showed that future homeowners could save up for a 20 percent down payment in about two years and four months.

“What’s amazing is that Ann Arbor — a bustling university town — offers young professionals graduating from the University of Michigan the chance to pursue their homeownership dream right here. While starter homes in this community just outside of Detroit are pricier than they are in other metros, the lower cost of living and high wages allows families to save up to 21% of their income,” RentCafe said.

With the average starter home costing $228,996, a minimum downpayment would come to about $45,799.

Ann Arborites spent 64 percent of the income on their needs, 15 percent on wants and saved 21 percent. The median income for a two-person family comes to $92,298, RentCafe said.

The top 10 areas where future homeowners could save quickly are:

  1. Bloomington, Illinois
  2. Springfield, Illinois
  3. Cedar Rapids, Iowa
  4. Trenton-Princeton, New Jersey
  5. Ann Arbor, Michigan
  6. Bismarck, North Dakota
  7. Bridgeport-Stamford-Norwalk, Connecticut
  8. Fargo, North Dakota
  9. Madison, Wisconsin
  10. Des Moines-West Des Moines, Iowa

Read about other metro areas that made the list here.


About the Author
Sarah Parlette headshot

Sarah has worked for WDIV since June 2018. She covers community events, good eats and small businesses in Ann Arbor and has a Master's degree in Applied Linguistics from Grand Valley State University.

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