Just $20 a Day Can Set Ohioans Up for Homeownership
By Melissa Dittmann Tracey, Guest Contributor
Nearly half of renters say they have zero savings for a down payment. But a new study breaks down how saving a little over time can bring homeownership more within reach.
Saving for a down payment can be a chief obstacle to homeownership, but in Ohio, aspiring home buyers may find they have it better off than many other parts of the country. In fact, Cleveland, Ohio, is one of the top three most affordable markets for saving up for a 15% down payment to buy a median-priced home—only behind Jackson, Miss., and Detroit, Mich.
The new study from MutualFund.com shows that nearly half—46%—of about 1,500 renters surveyed say they have zero savings for a down payment. About the same percentage believe they’ll never be able to afford a home.
However, the study revealed that saving a little each day—$25 or less—can add up over time to potentially put homeownership in reach within five years, if not sooner.
Every Dollar Counts
Hopeful first-time home buyers may be feeling stretched thin due to higher home prices and mortgage rates over recent years. The money they need to save up may seem daunting.
For some, the 20% down payment myth may be holding them back. Yet, the median downpayment for home buyers is 15%, and 10% for those ages 25 to 33 years old, according to the 2024 National Association of REALTORS®’ “Home Buyers and Sellers Generational Trends” report.
Taking that into account, researchers with MutualFund.com analyzed median home prices across the nation’s 170 largest cities to find out how much buyers would need to save annually and daily over a five-year period to afford a 15% down payment on a home. One-third of the areas analyzed require saving $25 per day or less to afford a down payment within five years.
Several Ohio cities were among the places requiring the lowest savings per day to buy a home, including:
Cleveland, Ohio
- Median home price: $110,545
- Down payment needed: $16,581.75
- Annual savings goal (5 years): $3,316.35
- Daily savings goal (5 years): $9.09
Toledo, Ohio
- Median home price: $123,237
- Down payment needed: $18,485.55
- Annual savings goal (5 years): $3,697.11
- Daily savings goal (5 years): $10.13
Akron, Ohio
- Median home price: $133,601
- Down payment needed: $20,040.15
- Annual savings goal (5 years): $4,008.03
- Daily savings goal (5 years): $10.98
Cincinnati, Ohio
- Median home price: $243,399
- Down payment needed: $36,509.85
- Annual savings goal (5 years): $7,301.97
- Daily savings goal (5 years): $20.01
Columbus, Ohio
- Median home price: $247,174
- Down payment needed: $37,076.10
- Annual savings goal (5 years): $7,415.22
- Daily savings goal (5 years): $20.32
View the full breakdown of the 170 markets evaluated. For comparison, the Bay Area’s Silicon Valley—Sunnyvale, Calif.—was found to have the most expensive 15% down payment in the nation at $315,313; aspiring home buyers there would need to save $173 a day to afford a median-priced home within five years, according to the study.
To ramp up savings even more, the report notes that potential buyers can put the money into a high-yield savings account or money market fund to help generate extra interest from their savings over time. Also, aspiring buyers should take a look at their monthly budget and identify areas where they may be able to cut back to increase their daily savings even more. A 2024 survey conducted by Redfin shows that the most common sacrifices people make to afford housing: Take no or fewer vacations, skip meals, work additional hours or shifts at a job and selling some of their belongings.
Down payment assistance programs also could help put homeownership within reach sooner. For example, aspiring buyers may be able to find several options through federal and state programs as well as lender-specific, low-down payment programs. Check out the Ohio Housing Finance Agency as well as the U.S. Department of Housing and Urban Development’s website for down payment assistance resources in Ohio.
Melissa Dittmann Tracey
ABOUT ME:
Melissa Dittmann Tracey is an award-winning journalist who covers the latest real estate news and trends. You can hear her weekly on the syndicated radio show and podcast, Real Estate Today, in her housing trends segment, “Hot or Not?” She is the creator of the Styled, Staged & Sold blog and a frequent contributor to Houselogic.com and REALTOR Magazine. She’s also the host of The Housing Muse podcast at http://www.housingmuse.com. Follow her on Instagram or X @housingmuse.
