Here’s what Charlotte & Raleigh home buyers need for a down payment, says Zillow
If you’re in the market to buy a home in Charlotte or Raleigh, the two largest metro areas in North Carolina, the down payment will cost you at least six figures.
Zillow recently released a report revealing the necessary down payment costs home buyers need to pay to comfortably afford a typical U.S. home across major metro areas, and how long it would take to save that amount.
According to the report, the average down payment cost for someone making the median income is nearly $127,750 for a home valued at about $360,000:
Typical home value in the US: $360,681
Down payment needed (cost) in the US: $127,743
Down payment needed (percentage) in the US: 35.4 %
Years to save in the US: 12
Average down payment assistance in the US: ~$17,000
In comparison, home buyers in Charlotte would need to make a $149,041 down payment based on the typical home value, mortgage rates, property taxes, homeowners’ insurance and maintenance:
Typical home value in Charlotte: $386,371
Down payment needed (cost) in Charlotte: $149,041
Down payment needed (percentage) in Charlotte: 38.6%
Years to save in Charlotte: 13.7
Average down payment assistance in Charlotte: $12,372
In Raleigh, the cost is even more expensive for prospective home buyers, according to the report:
Typical home value in Raleigh: $449,514
Down payment needed (cost) in Raleigh: $152,410
Down payment needed (percentage) in Raleigh: 33.9 %
Years to save in Raleigh: 11.8
Average down payment assistance in Raleigh: $16,814
“The enormous gap between the down payment needed now and five years ago underscores how the pandemic fueled a scorching-hot housing market, and why the rise in mortgage rates in the time since has cooled the market,” the report says. “Stubbornly high mortgage rates have pushed both buyers and sellers to the sidelines. With so few homes for sale, competition is stiff among the remaining buyers.”
You can find Zillow’s full report of how down payment costs compare in other major metros across the U.S. online at zillow.mediaroom.com.
This story was originally published July 2, 2024 at 1:00 PM with the headline "Here’s what Charlotte & Raleigh home buyers need for a down payment, says Zillow."
.jpg)