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Dallas rates as one of easiest places to save for a home down payment

A generous down payment is often the key to buying a home.

Photo by Ian Nolan/Getty Images

Dallas residents hoping to buy their first home can breathe a little sigh of relief. A new analysis shows DFW is the second best major metro area in the U.S. for putting aside money toward a down payment.

The analysis, produced by Zillow Group-owned RealEstate.com, indicates it takes an average of three years and five months for a first-time homebuyer in DFW to stash enough cash for a 20 percent down payment. Only Chicago had a shorter saving period for a 20 percent down payment.

While DFW boasts a hot job market and sizzling population growth, “the region has somewhat slipped under millennials’ radars — so much so that the Dallas Regional Chamber recently launched a ‘Say Yes to Dallas’ recruitment initiative. Maybe it’s time to give Dallas a second look,” RealEstate.com says.

The Austin metro area ranks ninth in the RealEstate.com analysis, with it taking an average of four years and seven months to save money for a 20 percent down payment.

“Austin is a magnet for millennials,” RealEstate.com says. “Employment opportunities draw them here, with the cool vibe, nightlife, and focus on green living cementing the deal. The housing market here is competitive, so expect a bidding battle once you’re ready to buy.”

By comparison, Portland, Oregon, is the worst place to save for a down payment: The average time there is 13 years, two months, according to RealEstate.com. Denver is second worst, at 12 years, five months.

Here’s the lowdown on how RealEstate.com arrived at the down payment numbers. The analysis factored in the median household income among millennials (ages 24 to 36) in the 35 largest U.S. metro areas, along with their estimated annual household savings, to figure out how long it would take to save for a 20 percent down payment on a starter home (priced within the bottom third of the market).

In DFW, the median annual income for millennial households is $50,600, with annual savings of $10,843. Taking that data into account, RealEstate.com arrived at a 20 percent down payment totaling $37,080 for an entry-level, single-family home with a median value of $185,400.

For Austin, the salary and savings figures were about the same as DFW’s, but the down payment and home numbers were higher. RealEstate.com computed a median annual income of $50,700 for millennials in the Austin area, with $10,864 in annual savings. For a starter home with a median value of $249,700, that would result in a 20 percent down payment of $49,940.

Twenty percent is the sweet spot for down payments, as a buyer with a down payment of less than that amount typically must buy private mortgage insurance. That adds to the cost of the monthly mortgage payment.

The RealEstate.com study might give solace to some DFW and Austin millennials who covet a home. According to Zillow Group’s most recent housing trends report, 39 percent of millennial homebuyers find it difficult to save money for a down payment.

“Contrary to popular belief, millennials want to buy homes, but high home prices, low inventory, and stagnant wage growth are some of the many factors that may be driving would-be buyers into delaying homeownership,” Justin LaJoie, general manager of RealEstate.com, says in a release.

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HAUTE PROPERTIES

Texas Hill Country ranch tied to George Strait lists for $19.5 million

Lone Woman Ranch, the Hill Country estate where country stars like George Strait, George Jones, and the Ace in the Hole Band rehearsed, is up for sale for $19.5 million.

Located on 675 acres in Hays County, just south of Austin, the secluded ranch once served as an artistic getaway for emerging Texas artists. The property, listed by Republic Ranches, is named after the nearby Lone Woman Mountain, and its elevation provides an incredible view of the county. On a clear day, you can see all the way to downtown Austin.

The land comes with two residences, both built near the entrance gate. The primary stone house has original hardwood floors, a recently remodeled kitchen and bathrooms, as well as a new HVAC system. The secondary residence was used as a rehearsal space. Both have had long-term residents who made improvements, and both have their own septic systems, wells, and electric meters.

The real appeal of Lone Woman Ranch, however, is the extensive woods, creeks, and natural setting. It is situated next to 6,000 acres of conservation land, including Storm Ranch.

Two fully stocked ponds — a 4-acre and a 1-acre — are located onsite. Runoff from the larger pond creates picturesque seasonal limestone waterfalls. The surrounding woods are full of wildlife, including white-tailed deer, turkeys, doves, and more, and the property is under wildlife exemption.

The entire mountain is included in the property, making it a veritable mini-kingdom for the owner, with unobstructed privacy on three sides. A network of ranch roads provides access throughout the property, including most of the way up Lone Woman Mountain, giving views around every corner.

It's little wonder the ranch was a muse to so many country musicians. But only Strait can tell you whether his 1996 hit "King of the Mountain" was inspired by the ranch.

Photo courtesy of Republic Ranches

Lone Woman Ranch has ties to country music stars.

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