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Six-figure down payments needed to keep homes affordable, Zillow analysis finds

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TAMPA, Fla. — If you're thinking about buying a home, you better make sure you have plenty of money for a down payment. In fact, you may need upwards of six figures worth of a down payment.

According to Zillow, to afford a monthly mortgage payment, middle-class Americans need to put more than $127,000 into a down payment on a home. The down payment would be on a home worth about $360,000 and be needed to keep mortgage payment below 30% of your monthly income.

The staggering numbers underscore the volatility in the home market even as some prices start to retreat in some areas. It also reinforces the claim that home ownership is no longer a reality for millions of American families.

For perspective, five years ago, mortgage rates were around 4%, and the typical home was worth about 50% less. Using the same 30% of monthly income standard, that home would have been affordable with no money down.

Looking at the numbers locally, the typical home value in the Tampa region is $382,802, according to Zillow. To be affordable, meaning below 30% of your monthly income, you would need to put in a down payment of $181,195, or roughly 47.4% of the value.

Zillow calculated that it would take an average family approximately 16.6 years to accumulate the $181,195 down payment needed in Tampa, assuming the family saved 10% of their monthly income and saw a 4% return on their savings.

Still, with rent increasing, tenants looking to save money to buy a house are running out of options.

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