Best Cities To Save For House Deposits
16-11-2020 | Landlord NewsA new study by CIA Landlords has analysed the best UK cities and US States to save for a house deposit or downpayment.
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 Insurance 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.
Huddersfield Ranks as the Best UK City to Save for a Deposit, Followed by Coventry and Aberdeen
| Rank | City | Average House Price (£) | Average Deposit Needed (£) | Average Monthly Salary (£) | Average Monthly Cost of Living (£) | Average Monthly Savings (£) | Time Taken to Save For Deposit (months) |
| 1 | Huddersfield | £172,624 | £25,893.60 | £1,950.00 | £422.85 | £1,527.15 | 16.96 |
| 2 | Coventry | £208,223 | £31,233.45 | £2,235.56 | £645.58 | £1,589.98 | 19.64 |
| 3 | Aberdeen | £215,271 | £32,290.65 | £2,294.44 | £674.96 | £1,619.48 | 19.94 |
| 4 | Hull | £136,767 | £20,515.05 | £1,617.26 | £606.12 | £1,011.14 | 20.29 |
| 5 | Manchester | £202,905 | £30,435.75 | £2,135.10 | £662.89 | £1,472.21 | 20.67 |
| 6 | Glasgow | £193,302 | £28,995.30 | £1,977.68 | £609.73 | £1,367.95 | 21.20 |
| 7 | West Bromwich | £153,890 | £23,083.50 | £1,700.00 | £648.21 | £1,051.79 | 21.95 |
| 8 | Wolverhampton | £212,468 | £31,870.20 | £1,912.50 | £481.39 | £1,431.11 | 22.27 |
| 9 | Swansea | £185,082 | £27,762.30 | £1,875.00 | £670.06 | £1,204.94 | 23.04 |
| 10 | Dundee | £179,066 | £26,859.90 | £1,757.34 | £612.63 | £1,144.71 | 23.46 |
| 11 | Southampton | £208,223 | £31,233.45 | £1,943.70 | £645.73 | £1,297.97 | 24.06 |
| 12 | Bradford | £133,580 | £20,037.00 | £1,429.00 | £597.37 | £831.63 | 24.09 |
| 13 | Doncaster | £160,043 | £24,006.45 | £1,587.50 | £613.28 | £974.22 | 24.64 |
| 14 | Derby | £202,932 | £30,439.80 | £1,872.22 | £638.97 | £1,233.25 | 24.68 |
| 15 | Stoke-on-Trent | £163,289 | £24,493.35 | £1,590.00 | £645.67 | £944.33 | 25.94 |
For those who are looking to save for a deposit and buy a home as soon as possible, Huddersfield ranks as the best city to do so. With its low average deposit of £25,893 and cost of living at £422.85 a month, monthly savings are high, with calculations estimating it could take you just 17 months to afford a deposit.
Coventry ranks second in the study, despite having a much higher deposit demand at £31,233.45. With its high average monthly salaries and reasonable average monthly living costs, monthly savings equate to £1,589.98. This would therefore mean you could have a deposit saved up in under 20 months.
Ranking in third is Aberdeen. Aberdeen’s high monthly savings of £1,619.48 counteracts the higher house and deposit prices. Much like Coventry, you could save for a deposit in under 20 months when moving to the Scottish city.
Study Reveals Cambridge Is the Worst UK City to Save for a Deposit
| Rank | City | Average House Price (£) | Average Deposit Needed (£) | Average Monthly Salary (£) | Average Monthly Cost of Living (£) | Average Monthly Savings (£) | Time Taken to Save For Deposit (months) |
| 1 | Cambridge | £442,744 | £66,411.60 | £1,982.23 | £709.94 | £1,272.29 | 52.20 |
| 2 | Croydon | £360,561 | £54,084.15 | £1,776.39 | £712.59 | £1,063.80 | 50.84 |
| 3 | London | £666,842 | £100,026.30 | £2,819.56 | £839.19 | £1,980.37 | 50.51 |
| 4 | Peterborough | £212,468 | £31,870.20 | £1,407.14 | £747.03 | £660.11 | 48.28 |
| 5 | York | £303,256 | £45,488.40 | £1,710.00 | £712.95 | £997.05 | 45.62 |
| 6 | Brighton | £384,338 | £57,650.70 | £2,040.00 | £773.36 | £1,266.64 | 45.51 |
| 7 | Crawley | £337,588 | £50,638.20 | £1,705.44 | £512.97 | £1,192.47 | 42.46 |
| 8 | Milton Keynes | £297,883 | £44,682.45 | £1,785.33 | £678.79 | £1,106.54 | 40.38 |
| 9 | Worcester | £272,206 | £40,830.90 | £1,647.50 | £608.66 | £1,038.84 | 39.30 |
| 10 | Watford | £435,046 | £65,256.90 | £2,413.89 | £736.71 | £1,677.18 | 38.91 |
| 11 | Edinburgh | £303,416 | £45,512.40 | £1,859.21 | £687.62 | £1,171.59 | 38.85 |
| 12 | Swindon | £262,853 | £39,427.95 | £1,757.81 | £693.79 | £1,064.02 | 37.06 |
| 13 | Bristol | £328,466 | £49,269.90 | £2,037.89 | £703.32 | £1,334.57 | 36.92 |
| 14 | Bournemouth | £304,229 | £45,634.35 | £1,882.87 | £606.98 | £1,275.89 | 35.77 |
| 15 | Bath | £436,884 | £65,532.60 | £2,662.50 | £806.97 | £1,855.53 | 35.32 |
With its high house prices and high average monthly living costs, Cambridge ranks as the worst UK city to save for a deposit. Individuals living in Cambridge would need more than four years of continuous saving (whilst living at home) in order to be able to afford the average deposit price of £66,411.60.
Croydon ranks as the second-worst city for a deposit, mainly due to its combination of high deposit costs and low monthly savings capabilities. With average monthly savings of just £1,063.80, it would take residents just over four years to be able to save for a deposit.
It may come to little surprise that London is ranked within the top 3 worst cities to save for a deposit. Despite its high average monthly salary and monthly savings capabilities, the size of deposits means it can take residents over four years to hit the required deposit figure of £100,026.30.
West Virginia Ranks as the Best US State to Save for a Downpayment
| Rank | State | Average House Price ($) | Average Deposit Needed ($) | Average Monthly Salary ($) | Average Monthly Cost of Living ($) | Average Monthly Savings ($) | Time Taken to Save For Deposit (months) |
| 1 | West Virginia | $107,064 | $21,412.80 | $4,079.91 | $638.00 | $3,441.91 | 6.22 |
| 2 | Ohio | $156,343 | $31,268.60 | $4,024.46 | $946.09 | $3,078.37 | 10.16 |
| 3 | Kentucky | $150,918 | $30,183.60 | $3,733.83 | $870.15 | $2,863.68 | 10.54 |
| 4 | Arkansas | $131,837 | $26,367.40 | $3,330.18 | $841.84 | $2,488.34 | 10.60 |
| 5 | Oklahoma | $134,289 | $26,857.80 | $3,313.58 | $843.24 | $2,470.34 | 10.87 |
| 6 | Georgia | $208,833 | $41,766.60 | $4,713.53 | $1,023.02 | $3,690.51 | 11.32 |
| 7 | South Dakota | $217,215 | $43,443.00 | $4,383.91 | $615.00 | $3,768.91 | 11.53 |
| 8 | Virginia | $293,818 | $58,763.60 | $5,583.41 | $621.00 | $4,962.41 | 11.84 |
| 9 | Iowa | $155,781 | $31,156.20 | $3,367.53 | $862.93 | $2,504.60 | 12.44 |
| 10 | Wyoming | $254,753 | $50,950.60 | $4,570.41 | $479.00 | $4,091.41 | 12.45 |
| 11 | Illinois | $204,872 | $40,974.40 | $4,254.50 | $1,052.81 | $3,201.69 | 12.80 |
| 12 | North Carolina | $210,766 | $42,153.20 | $4,292.39 | $1,006.12 | $3,286.27 | 12.83 |
| 13 | Missouri | $167,700 | $33,540.00 | $3,485.41 | $917.62 | $2,567.79 | 13.06 |
| 14 | Texas | $213,036 | $42,607.20 | $4,120.57 | $865.25 | $3,255.32 | 13.09 |
| 15 | Tennessee | $192,275 | $38,455.00 | $3,827.94 | $967.00 | $2,860.94 | 13.44 |
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 $30,183.60 means you could be moving into your new home within a year!
Hawaii Ranks as the Worst Us State to Save for a Downpayment
| Rank | City | Average House Price ($) | Average Deposit Needed ($) | Average Monthly Salary ($) | Average Monthly Cost of Living ($) | Average Monthly Savings ($) | Time Taken to Save For Deposit (months) |
| 1 | Hawaii | $646,733 | $129,346.60 | $3,217.08 | $1,244.14 | $1,972.94 | 65.56 |
| 2 | Montana | $293,685 | $58,737.00 | $2,363.66 | $845.03 | $1,518.63 | 38.68 |
| 3 | New Jersey | $346,368 | $69,273.60 | $2,834.33 | $1,031.84 | $1,802.49 | 38.43 |
| 4 | California | $579,332 | $115,866.40 | $4,583.86 | $1,055.44 | $3,528.42 | 32.84 |
| 5 | Idaho | $303,606 | $60,721.20 | $2,894.14 | $793.70 | $2,100.44 | 28.91 |
| 6 | Oregon | $374,604 | $74,920.80 | $3,896.85 | $1,031.20 | $2,865.65 | 26.14 |
| 7 | Rhode Island | $312,255 | $62,451.00 | $3,126.16 | $703.00 | $2,423.16 | 25.77 |
| 8 | Utah | $360,044 | $72,008.80 | $3,796.97 | $846.53 | $2,950.44 | 24.41 |
| 9 | Colorado | $412,819 | $82,563.80 | $4,400.95 | $997.14 | $3,403.81 | 24.26 |
| 10 | Nevada | $311,018 | $62,203.60 | $3,499.01 | $890.36 | $2,608.65 | 23.85 |
| 11 | Michigan | $180,404 | $36,080.80 | $2,442.26 | $884.25 | $1,558.01 | 23.16 |
| 12 | Maryland | $317,033 | $63,406.60 | $3,711.52 | $965.85 | $2,745.67 | 23.09 |
| 13 | Vermont | $264,777 | $52,955.40 | $3,562.08 | $1,251.36 | $2,310.72 | 22.92 |
| 14 | Massachusetts | $439,541 | $87,908.20 | $5,038.35 | $1,159.17 | $3,879.18 | 22.66 |
| 15 | Wisconsin | $206,169 | $41,233.80 | $2,878.29 | $1,019.15 | $1,859.14 | 22.18 |
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
In order to calculate the best cities for saving for a deposit, we analysed 6 costs and factors including the average cost of properties, average deposit size, average monthly salary, average monthly cost of living, average monthly savings and the time, in months, taken to afford a deposit.
Notes to Editors:
If you’re interested in covering our study, we only ask to please refer back to this study with a link to this post.
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