High-cost coastal metros require decades of saving, while affordable Southern metros and military hubs remain within reach
AUSTIN, Texas, Dec. 29, 2025 /PRNewswire/ — Saving for a down payment remains one of the biggest barriers to homeownership in the U.S., even as housing market conditions improve. In 2025, the typical U.S. household needs seven years to save for a typical down payment, a significant improvement from the peak of 12 years in 2022, according to a new analysis from Realtor.com®.
While the timeline has shortened as home price growth has cooled and affordability has modestly improved, it remains roughly double the pre-pandemic norm, reflecting both higher down payment amounts and a persistently lower personal savings rate.
“Higher home prices and intensified competition have pushed typical down payments higher, at the same time that inflation and rising household expenses have reduced savings rates,” said Danielle Hale, chief economist at Realtor.com®. “Although conditions have improved since 2022, today’s timeline shows that saving for a home takes meaningfully longer than it did before the pandemic, especially in high-cost markets.”
Lower Savings Rates and Higher Down Payments Extend Timelines
The U.S. personal savings rate has averaged 5.1% of income so far in 2025, below the pre-pandemic norm of 6.5% and far below pandemic-era highs, limiting how quickly households can accumulate funds for upfront housing costs. At the same time, high home prices and increased competition have pushed down payments higher.
In the third quarter of 2019, the typical buyer paid about $13,900 as a down payment. By the third quarter of 2025, that figure had more than doubled to $30,400, significantly extending the time required to save.
The time needed to save for a typical down payment briefly peaked at roughly 16 years in April 2022, more than triple pre-pandemic norms, before falling to about seven years in recent data as competition cooled and affordability gradually improved.
Decades of Saving in the Most Expensive Markets
In many high-cost coastal metros, saving for a typical down payment can take 20 to more than 35 years, effectively pricing out many first-time and moderate-income buyers.
Metros With the Longest Time to Save for a Down Payment
|
Metro |
Jan – Nov |
2025 med |
Annual 2025 Avg) |
Years to |
|
San Francisco-Oakland-Fremont, Calif. |
$245,466 |
$132,568 |
$6,717 |
36.5 |
|
San Jose-Sunnyvale-Santa Clara, Calif. |
$304,623 |
$166,033 |
$8,412 |
36.2 |
|
Los Angeles-Long Beach-Anaheim, Calif. |
$170,035 |
$98,329 |
$4,982 |
34.1 |
|
San Diego-Chula Vista-Carlsbad, Calif. |
$167,814 |
$110,114 |
$5,579 |
30.1 |
|
New York-Newark-Jersey City, N.Y.-N.J. |
$121,796 |
$102,807 |
$5,209 |
23.4 |
|
Seattle-Tacoma-Bellevue, Wash. |
$133,937 |
$117,158 |
$5,936 |
22.6 |
|
Boston-Cambridge-Newton, Mass.-N.H. |
$124,094 |
$119,567 |
$6,058 |
20.5 |
|
Sacramento-Roseville-Folsom, Calif. |
$103,770 |
$101,407 |
$5,138 |
20.2 |
“In high-cost markets, the typical down payment alone exceeds a full year of household income,” said Hannah Jones, senior economic research analyst at Realtor.com®. “That reality makes homeownership feel unattainable for many buyers, particularly younger households trying to enter the market for the first time.”
Affordable Southern Metros and Military Hubs Offer Faster Paths
In contrast, many Southern metros and areas with high VA loan usage require less than five years to save for a typical down payment. Smaller down payments, combined with solid household incomes, make homeownership more attainable in these regions.
Metros With the Shortest Time to Save for a Down Payment
|
Metro |
Jan – Nov |
2025 med |
Annual 2025 Avg) |
Years to |
|
Atlanta-Sandy Springs-Roswell, Ga. |
$22,479 |
$91,624 |
$4,642 |
4.8 |
|
Tucson, Ariz. |
$17,773 |
$73,941 |
$3,746 |
4.7 |
|
Oklahoma City, Okla. |
$16,986 |
$73,107 |
$3,704 |
4.6 |
|
Jacksonville, Fla. |
$17,278 |
$80,673 |
$4,087 |
4.2 |
|
Birmingham, Ala. |
$15,563 |
$73,644 |
$3,731 |
4.2 |
|
Houston-Pasadena-The Woodlands, Texas |
$14,927 |
$83,452 |
$4,228 |
3.5 |
|
Memphis, Tenn.-Miss.-Ark. |
$8,563 |
$67,785 |
$3,434 |
2.5 |
|
Virginia Beach-Chesapeake-Norfolk, Va.-N.C. |
$8,394 |
$84,890 |
$4,301 |
2.0 |
|
San Antonio-New Braunfels, Texas |
$5,067 |
$77,385 |
$3,921 |
1.3 |
Military hubs, in particular, benefit from widespread VA loan usage, which often allows buyers to purchase with little or no down payment, shifting savings toward closing costs rather than large upfront cash requirements.
The First Step Toward Homeownership
While affordability challenges persist, roughly three-quarters of Americans still consider owning a home part of the American dream. For first-time buyers, easing rents may offer an opportunity to increase savings, while repeat buyers can use savings to reduce future loan balances and manage higher monthly payments.
“Saving consistently, even in small amounts, is a meaningful first step toward homeownership,” Jones said. “In today’s market, building that financial cushion can make a real difference when buyers are ready to act.”
Methodology Using the monthly personal savings rate through September 2025, annual estimated median household income, and monthly median down payment dollar amount data, we estimated how many years it would take to save for a down payment in the US and in the 50 largest U.S. metros.
About Realtor.com® Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media Contact: Emily Do, [email protected]
SOURCE Realtor.com
