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West Virginia Ranks as the Best US State to Save for a Downpayment

By RealtyBiz News | November 21, 2020

In the current climate, saving money for a big enough house deposit is becoming increasingly out of reach. Whether it’s due to an increase in home bill costs or banks wanting a higher percentage deposit, saving enough cash amidst a looming pandemic seems almost impossible for many young people.

But what if moving cities could provide you with a better opportunity to purchase your dream home?

In this study, CIA Landlord has revealed the best and worst UK cities and US states to save for a house deposit or downpayment. The research explores average house prices, average deposits, monthly salary and spending, average monthly savings and the average time it will take to save for the deposit.

You can view the full study here:

West Virginia Ranks as the Best US State to Save for a Downpayment

RankStateAverage House Price ($)Average Deposit Needed ($)Average Monthly Salary ($)Average Monthly Cost of Living ($)Average Monthly Savings ($)Time Taken to Save For Deposit (months)
1West Virginia$107,064$21,412.80$4,079.91$638.00$3,441.916.22
7South Dakota$217,215$43,443.00$4,383.91$615.00$3,768.9111.53
12North Carolina$210,766$42,153.20$4,292.39$1,006.12$3,286.2712.83

Taking just 6 months to save for a deposit, West Virginia ranks as the best state. With its low average house prices of just $107,064 and high average monthly salaries of $4,079.91, it means individuals are able to save $3,441.91 a month. With the average deposit needed being around $21,412.80, you’ll only need half a year to save! 

Ohio follows West Virginia in second place. With house prices averaging $156,343, you’ll need a deposit of just $31,268.60. Having average monthly savings of £3,078.37 means you’ll be able to save for a deposit in just over 10 months. 

Kentucky rounds off the top 3 US states, taking just over 10.5 months to save for a deposit. Lower house prices and low monthly costs of living allow for average monthly savings to be around $2,863.68. This combined with a low deposit of $30,183.60 means you could be moving into your new home within a year! 

Hawaii Ranks as the Worst Us State to Save for a Downpayment

RankCityAverage House Price ($)Average Deposit Needed ($)Average Monthly Salary ($)Average Monthly Cost of Living ($)Average Monthly Savings ($)Time Taken to Save For Deposit (months)
3New Jersey$346,368$69,273.60$2,834.33$1,031.84$1,802.4938.43
7Rhode Island$312,255$62,451.00$3,126.16$703.00$2,423.1625.77

With soaring house prices of $646,733 and deposit averages hitting $129,346.60, it’s no surprise that Hawaii is the worst state to save for a deposit. High average monthly costs of living counteract the high average salaries available in Hawaii meaning it will take you nearly five and a half years to save for a deposit. 

Montana ranks as the second-worst state to save for a deposit despite it’s much lower house prices of $293,685. With that, average monthly wages are also low, extending the time needed to save for a deposit. 

One noticeable state is California. House prices average at $579,332 meaning the average deposit needed is a staggering $115,866.40. What helps the state of California however is its high salaries. With monthly salaries reaching $4,583.86, you’re able to put more than $3,500 away each month, saving for a deposit in just over two and a half years.

Sources and Methodology

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