Down Payment Savings Time Drops to 7 Years

The time required to save for a home down payment has decreased to approximately seven years in 2025, according to recent market analysis. This represents a significant recovery from the 12-year peak recorded in 2022, offering relief to prospective homebuyers.

Despite this improvement, the financial barrier to entry remains high. The median down payment is still about double the amount required before the pandemic. Buyers in the current market face higher home prices and intensified competition, which drives up the necessary savings.

While the national average is seven years, there is a wide disparity across different regions. Some high-cost metropolitan areas require decades of saving, while others allow buyers to reach their goal in just a few years.

The landscape of home buying shifted significantly in 2025, with the typical household now needing seven years to accumulate a down payment. An analysis by Realtor.com indicates that this timeline assumes a savings rate of 5.1% of household income, which matches the national average for 2025.

While the timeline has improved from the 12-year high seen in 2022, it remains substantially longer than the period immediately preceding the pandemic. The persistence of this gap is driven by rising costs.

Danielle Hale, chief economist at Realtor.com, attributes the difficulty to a combination of market forces. "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," Hale stated.

The financial gap is quantifiable. During the third quarter of 2019, the average down payment was approximately $13,900. By the third quarter of 2025, that figure had risen to $30,400. Hale further noted that "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."

In major metropolitan areas with premium real estate prices, the down payment requirement creates a formidable barrier. The analysis identifies the San Francisco-Oakland-Fremont region as the market with the longest wait time, requiring 36.5 years of saving for the typical household.

The sheer scale of the required down payment in these regions often exceeds a household's annual earnings. Hannah Jones, senior economic research analyst at Realtor.com, explained the impact on potential buyers.

"In high-cost markets, the typical down payment alone exceeds a full year of household income," Jones said. "That reality makes homeownership feel unattainable for many buyers, particularly younger households trying to enter the market for the first time."

This sentiment reflects the struggle many face in expensive coastal cities, where the disparity between income and housing costs continues to widen, pushing the dream of ownership further out of reach for the average family.

Despite the challenges in high-cost areas, there are numerous housing markets where saving for a down payment is significantly faster. Realtor.com identified eight of the largest U.S. markets where the timeline is under five years.

The top markets for quick savings are dominated by cities in the South and Midwest, offering more affordable housing options relative to median incomes.

Top 3 Markets:

1. San Antonio-New Braunfels, TX: The most favorable market, requiring only 1.3 years to save for a down payment of $5,067. The median household income is $77,385.
2. Virginia Beach-Chesapeake-Norfolk, VA: Requires 2.0 years to save for a down payment of $8,394. The median household income is $84,890.
3. Memphis, TN-MS-AR: Requires 2.5 years to save for a down payment of $8,563. The median household income is $67,785.

Additional Affordable Markets:

• Houston-Pasadena-The Woodlands, TX: 3.5 years (Income: $83,452)
• Jacksonville, FL: 4.2 years (Income: $80,673)
• Birmingham, AL: 4.2 years (Income: $73,644)
• Oklahoma City, OK: 4.6 years (Income: $73,107)
• Tucson, AZ: 4.7 years (Income: $73,941)

These markets demonstrate that while the national trend is challenging, regional economic conditions can drastically alter the timeline for prospective homeowners.