A typical down payment costs $30k — which takes 7 years to save
That’s an improvement from 2022, when the timeline was twice as long, but it still puts homeownership out of reach for many consumers as savings rates decline.
The typical American household needs seven years to save for a down payment, according to a Realtor.com analysis released Monday.
Even as home price growth has eased, down payments remain unaffordable for the majority of Americans. In the third quarter of 2025, a typical down payment cost $30,400 — more than double what buyers paid six years ago.
Down payments can outpace annual income
In high-cost markets, down payments can exceed "a full year of household income," according to Hannah Jones, senior economic research analyst at Realtor.com.
Down payments on the Californian coast, for example, can be upward of $300,000, while median household incomes hover around $100,000 to $150,000. In the nation's highest-cost metros — Los Angeles, San Jose and San Francisco — down payments could take more than 30 years to save for.
In other high cost metros, like Boston, New York and Seattle, the typical down payment costs more than $120,000, outpacing median household incomes in those areas.
Americans struggle to save
To calculate the current down payment timeline across the U.S., Realtor.com used monthly personal savings rates, estimated median household incomes for 2025, and monthly median down payment data.
Nationwide, down payment affordability has — perhaps surprisingly — improved since 2022, when the typical savings timeline peaked at 12 to 14 years. But the current timeline remains double the pre-pandemic norm.
That's partly because amid inflation and rising household costs, it's difficult to save up. This year, the personal savings rate for U.S. households averaged at 5.1% of total income. About five years ago, the norm was 6.5%.
Southern metros are a more affordable option
Buyers set on closing in 2026 and others seeking a faster path to homeownership may want to consider the South and Sun Belt regions, which have generally seen flat or falling prices and greater affordability. For the typical buyer, a home purchase in Atlanta, Tucson, Oklahoma City, Jacksonville or Birmingham requires less than five years to save, with down payment amounts ranging from roughly $15,000 to $22,000.
For those hoping to buy in the next 2-4 years, the Virginia Beach, Memphis and Houston metros are good options.
Areas with a large military presence also tend to have shorter savings timelines. That's likely due to a higher use of loans from the U.S. Department of Veterans Affairs, which require a lower (or even no) down payment. The most affordable metro nationwide, San Antonio, has a median down payment of about $5,000, which the typical household can save in just over a year.
Regardless of where a buyer is looking, consistently setting money aside — no matter the amount — can move them closer to homeownership, Jones noted.
"In today's market, building that financial cushion can make a real difference when buyers are ready to act," Jones said.