COLORADO — There are a lot of great resources for first-time homebuyers in Colorado, but if you take those resources out of the equation it can take some time to save up for a down payment. According to a new study, Colorado ranks in the top 10 states for the amount of time it can take.
There are benefits and downsides to first-time homebuyer programs, News5 recommends doing your own research on the topic, but NerdWallet has compiled a list of resources for Colorado you can view here. The Colorado Housing and Finance Authority (CHFA) also sponsors homebuyer education classes throughout the state, click here for more info on those classes, or click here for information on how to get a CHFA loan.
A new study from Cinch Home Services analyzed data from the U.S. government on the monthly expenditure of residents in each state before comparing this to the median house price. The monthly savings and the time to save for a deposit of 10% were then calculated to determine the ranking. If you put homebuyer programs aside, the report found that in Colorado the time to save for a deposit is about four years and nine months. That compares to South Dakota, where the report found people have to save for about one year and nine months.
You can see the full rankings in the chart below and the methodology at the bottom of this article.
| State | Average Monthly Income | Cost of Deposit | Monthly Savings | Time to Save for a Deposit |
| Hawaii | $4,857 | $84,640 | $425 | 16 years, 7 months |
| California | $5,762 | $72,580 | $739 | 8 years, 2 months |
| Utah | $4,670 | $51,770 | $664 | 6 years, 6 months |
| Oregon | $4,886 | $48,480 | $680 | 5 years, 11 months |
| Arizona | $4,691 | $41,120 | $598 | 5 years, 9 months |
| Nevada | $4,880 | $44,110 | $677 | 5 years, 5 months |
| Florida | $5,081 | $38,100 | $596 | 5 years, 4 months |
| Idaho | $4,414 | $42,860 | $688 | 5 years, 2 months |
| Georgia | $4,407 | $32,300 | $550 | 4 years, 11 months |
| Colorado | $5,848 | $55,030 | $967 | 4 years, 9 months |
| Massachusetts | $6,342 | $57,080 | $1,046 | 4 years, 7 months |
| Washington | $5,935 | $57,600 | $1,060 | 4 years, 6 months |
| Delaware | $4,899 | $35,970 | $684 | 4 years, 5 months |
| Montana | $4,758 | $39,230 | $763 | 4 years, 3 months |
| Rhode Island | $4,985 | $41,180 | $805 | 4 years, 3 months |
| New York | $5,703 | $42,020 | $928 | 3 years, 9 months |
| Maryland | $5,390 | $41,360 | $916 | 3 years, 9 months |
| New Hampshire | $5,818 | $41,540 | $929 | 3 years, 9 months |
| New Jersey | $5,931 | $46,100 | $1,043 | 3 years, 8 months |
| North Carolina | $4,583 | $30,860 | $719 | 3 years, 7 months |
| Vermont | $4,955 | $33,200 | $780 | 3 years, 7 months |
| Maine | $4,843 | $31,070 | $733 | 3 years, 6 months |
| South Carolina | $4,273 | $27,290 | $649 | 3 years, 6 months |
| Virginia | $5,376 | $38,290 | $936 | 3 years, 5 months |
| Alaska | $5,495 | $34,750 | $865 | 3 years, 4 months |
| New Mexico | $4,164 | $25,630 | $648 | 3 years, 4 months |
| Tennessee | $4,745 | $30,730 | $838 | 3 years, 1 month |
| Texas | $5,012 | $29,690 | $846 | 2 years, 11 months |
| Minnesota | $5,271 | $32,860 | $943 | 2 years, 11 months |
| Michigan | $4,551 | $23,610 | $723 | 2 years, 9 months |
| Kentucky | $4,145 | $21,180 | $650 | 2 years, 9 months |
| Wisconsin | $4,819 | $27,250 | $850 | 2 years, 8 months |
| Alabama | $4,079 | $21,660 | $689 | 2 years, 7 months |
| Missouri | $4,661 | $23,360 | $777 | 2 years, 6 months |
| Indiana | $4,560 | $22,590 | $756 | 2 years, 6 months |
| Louisiana | $4,469 | $21,560 | $729 | 2 years, 6 months |
| Pennsylvania | $5,068 | $25,990 | $900 | 2 years, 5 months |
| Connecticut | $6,343 | $36,780 | $1,274 | 2 years, 5 months |
| West Virginia | $4,006 | $16,370 | $573 | 2 years, 5 months |
| Mississippi | $3,817 | $16,980 | $607 | 2 years, 4 months |
| Illinois | $5,252 | $26,330 | $949 | 2 years, 4 months |
| Ohio | $4,576 | $22,020 | $808 | 2 years, 3 months |
| Arkansas | $4,357 | $19,570 | $803 | 2 years, 0 months |
| Oklahoma | $4,622 | $20,860 | $889 | 1 year, 11 months |
| Wyoming | $6,058 | $29,870 | $1,284 | 1 year, 11 months |
| Iowa | $4,713 | $21,330 | $918 | 1 year, 11 months |
| Nebraska | $5,351 | $24,520 | $1,061 | 1 year, 11 months |
| Kansas | $4,925 | $21,980 | $975 | 1 year, 11 months |
| North Dakota | $5,437 | $24,670 | $1,136 | 1 year, 10 months |
| South Dakota | $5,551 | $26,820 | $1,265 | 1 year, 9 months |
METHODOLOGY FROM CINCH HOME SERVICES:
Using data from bea.gov and census.gov, the most affordable states to save for a house were determined.
The median price of a house and the cost of rent in each state were retrieved from the American Community Survey (ACS). House prices were multiplied by 10% to find the cost of a typical deposit. The median cost of essential spending, such as healthcare, groceries, and transportation, was then retrieved from bea.gov.
Watch As We Break Down A Report That Shows The Time It Takes To Save For A House
The per capita disposable personal income in each state was retrieved from bea.gov. From this, essential spending and rent were subtracted. The remaining monthly disposable income was multiplied by 50% to calculate the amount that can be saved per month.
The time to save for a house in each state was then calculated by dividing the cost of a deposit by the average monthly savings. The states were then ranked by this metric.
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