California homebuyer's goal: Save $18,200 annually for 5 years

"The report pondered how long it would take to save 10% of the median purchase price, a common goal for first-timers, assuming the wannabe owner saved 10% of income left over after paying taxes and life's "essentials," using the median household income. Of course, the California "affordability" numbers were ugly. For starters, the Golden State has the highest down-payment goal: $83,200 vs. a median of $38,750 across the 50 states. After California came Hawaii at $74,400, and Massachusetts at $63,900."

"However, Golden State paychecks are generous. That makes the potential monetary pie from which to save - income minus tax and core costs - sizable in California at $33,200 of the leftover income?. That's No. 11 among the states and 19% above the 50-state median of $27,900. If a Californian saved 10% of that excess income for the down payment, it would take 25 years to reach the down payment goal."

Calculations estimate time to save 10% of the median purchase price assuming saving 10% of income left after taxes and essentials using median household income. California's 10% down-payment target equals $83,200 versus a 50-state median of $38,750. California leftover income after taxes and core costs is $33,200, No. 11 and 19% above the 50-state median of $27,900. Saving 10% of that excess income yields a 25-year time to reach the down payment. Montana takes 24 years and New York 23; Iowa and Ohio can take under ten years. Hawaii's down-payment goal is $74,400 and Massachusetts' is $63,900; Texas' goal is $33,900 and Florida's $40,400.

Read at The Mercury News