The 25 US cities where renters are becoming homeowners the quickest

Texas cities (like San Antonio, above) dominated the list.

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Texas cities (like San Antonio, above) dominated the list.
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Shutterstock

  • A recent study by SmartAsset, a financial technology company, calculated the average time it takes for renters to become homeowners in the largest 100 US cities.
  • The study measured each city on five variables, including the area’s annual rent and and the area’s average closing costs. The study assumed renters eager to buy a home are saving 40% of their post-tax, post-rent annual income.
  • In the 25 cities where renters become homeowners the quickest, the estimated average time it takes to save is less than five years.
  • Visit Business Insider’s homepage for more stories.

The road to homeownership for some American renters can be bumpy.

Depending on things like annual savings, income, living expenses, and local home values, some renters are able to save enough to become homeowners quicker than others.

Read more: The 10 cheapest states to buy a home in right now

A recent study by SmartAsset, a financial technology company, calculated the average time it takes for renters to become homeowners in the 100 largest US cities.

The study measured each city on five variables:

  • The median income for residents
  • The estimated income tax rate for residents
  • The area’s median annual rent
  • The area’s median home value
  • The area’s average closing costs

You can read more about the methodology in this study here. It assumes renters eager to buy a home are saving 40% of their post-tax, post-rent annual income.

These are the 25 cities where renters are able to become homeowners the quickest, in order of the longest to the shortest amount of time it takes to save for upfront home costs (which here includes both a 20% down payment and the area’s average closing costs).


25. San Antonio, Texas

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Shutterstock

Estimated yearly savings: $7,116

Upfront home costs: $33,027

Estimated years to homeownership: 4.64


24. St. Louis, Missouri

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f11photo/Shutterstock

Estimated yearly savings: $6,777

Upfront home costs: $30,931

Estimated years to homeownership: 4.56


23. Milwaukee, Wisconsin

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Henryk Sadura/Shutterstock

Estimated yearly savings: $6,220

Upfront home costs: $27,926

Estimated years to homeownership: 4.49


22. Cincinnati, Ohio

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Sean Pavone/Shutterstock

Estimated yearly savings: $7,178

Upfront home costs: $32,045

Estimated years to homeownership: 4.46


21. Lincoln, Nebraska

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Getty Images

Estimated yearly savings: $8,470

Upfront home costs: $37,526

Estimated years to homeownership: 4.43


20. Greensboro, North Carolina

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Getty Images

Estimated yearly savings: $7,831

Upfront home costs: $34,562

Estimated years to homeownership: 4.41


T19. Tulsa, Oklahoma

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Shuterstock

Estimated yearly savings: $7,111

Upfront home costs: $30,968

Estimated years to homeownership: 4.35


T19. Dallas, Texas

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Jeremy Woodhouse/Getty Images

Estimated yearly savings: $9,558

Upfront home costs: $41,595

Estimated years to homeownership: 4.35


17. Oklahoma City, Oklahoma

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Getty Images

Estimated yearly savings: $7,995

Upfront home costs: $34,650

Estimated years to homeownership: 4.33


16. Wichita, Kansas

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Sean Pavone/Shutterstock

Estimated yearly savings: $7,009

Upfront home costs: $30,213

Estimated years to homeownership: 4.31


15. Buffalo, New York

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Getty Images

Estimated yearly savings: $5,759

Upfront home costs: $24,759

Estimated years to homeownership: 4.30


14. Arlington, Texas

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Shutterstock

Estimated yearly savings: $8,680

Upfront home costs: $37,101

Estimated years to homeownership: 4.27


13. Indianapolis, Indiana

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Shutterstock

Estimated yearly savings: $7,244

Upfront home costs: $30,165

Estimated years to homeownership: 4.16


12. Kansas City, Missouri

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Tupungato/Shutterstock

Estimated yearly savings: $8,029

Upfront home costs: $33,232

Estimated years to homeownership: 4.14


11. Houston, Texas

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Shutterstock

Estimated yearly savings: $9,312

Upfront home costs: $38,189

Estimated years to homeownership: 4.10


T10. Fort Worth, Texas

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Shutterstock

Estimated yearly savings: $9,326

Upfront home costs: $37,421

Estimated years to homeownership: 4.01


T10. Garland, Texas

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Getty Images

Estimated yearly savings: $8,928

Upfront home costs: $35,815

Estimated years to homeownership: 4.01


8. Omaha, Nebraska

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Shutterstock

Estimated yearly savings: $8,667

Upfront home costs: $34,630

Estimated years to homeownership: 4


7. Cleveland, Ohio

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Getty Images

Estimated yearly savings: $4,372

Upfront home costs: $17,424

Estimated years to homeownership: 3.99


6. Memphis, Tennessee

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Sean Pavone/shutterstock

Estimated yearly savings: $5,804

Upfront home costs: $23,044

Estimated years to homeownership: 3.97


5. Detroit, Michigan

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f11photo/Shutterstock

Estimated yearly savings: $3,734

Upfront home costs: $14,407

Estimated years to homeownership: 3.86


4. Fort Wayne, Indiana

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Katherine Welles/Shutterstock

Estimated yearly savings: $6,993

Upfront homes costs: $26,214

Estimated years to homeownership: 3.75


3. Columbus, Ohio

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Sean Pavone/Shutterstock

Estimated yearly savings: $9,181

Upfront homes costs: $33,715

Estimated years to homeownership: 3.67


2. Irving, Texas

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Shutterstock

Estimated yearly savings: $12,247

Upfront homes costs: $41,015

Estimated years to homeownership: 3.35


1. Toledo, Ohio

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Getty Images

Estimated yearly savings: $6,125

Upfront homes costs: $18,908

Estimated years to homeownership: 3.09