In today’s housing market, the biggest question for most aspiring homeowners isn’t “Can I qualify for a mortgage?” — it’s “How long will it take me to save the down payment?”
According to the latest 2025 data from Realtor.com®, the national average time for a median-income household to save for a down payment on a median-priced home is seven years.
That’s a dramatic improvement from the staggering 12 years required at the peak of the 2022–2023 market frenzy, but it’s still nearly twice as long as the roughly 3.5–4 years it took before the pandemic.
Why the Timeline For A Down Payment Is Still So Long
Two major forces are at play:
- Down payments have more than doubled since 2019
- Q3 2019 typical payment: $13,900
- Q3 2025 typical payment: $30,400
2. Americans are saving less of their income
- Pre-pandemic personal savings rate: 6.5%
- 2025 average savings rate: 5.1%
As Realtor.com Chief Economist Danielle Hale explains, persistent inflation and rising everyday expenses have forced many households to dip into savings just to cover current bills, leaving less to put toward future goals like homeownership.
Realtor.com Senior Economic Analyst Hannah Jones puts it bluntly:
“The down payment remains one of the biggest barriers to homeownership.”
In many high-cost markets, the required down payment now exceeds an entire year’s household income — making owning a home feel completely out of reach, especially for younger and first-time buyers.
The Good News? Two-Thirds of Americans Still Plan to Buy
Despite the challenges, a Realtor.com survey conducted earlier this year found that nearly 66% of respondents still have homeownership as a major life goal. And there are signs of hope: rents are finally easing in many markets, which could free up cash flow and help savings rates rebound.
As Jones says, “Saving consistently, even in small amounts, is a meaningful first step toward homeownership.”
Where It Takes the Longest (and Shortest) to Save For A Down Payment
The national seven-year average hides massive regional differences. Coastal, high-cost metros dominate the “longest wait” list, while more affordable Southern and military-heavy markets offer dramatically shorter timelines.
Top 5 Longest Markets to Save for a Down Payment (2025)
- San Francisco, CA – 36.5 years: Median income: $132,568 | Median down payment: $245,466
- San Jose, CA – 36.2 years: Median income: $166,033 | Median down payment: $304,623
- Los Angeles, CA – 34.1 years: Median income: $98,329 | Median down payment: $170,035
- San Diego, CA – 30.1 years: Median income: $110,114 | Median down payment: $167,814
- New York City, NY – 23.4 years: Median income: $102,807 | Median down payment: $121,796
In these metros, the typical down payment literally exceeds a full year (or several years) of take-home pay.
Top 5 Shortest Markets to Save for a Down Payment (2025)
- San Antonio, TX – 1.3 years: Median income: $77,385 | Median down payment: $5,067
- Norfolk, VA (military-heavy, high VA loan usage) – 2.0 years: Median income: $84,890 | Median down payment: $8,394
- Memphis, TN – 2.5 years: Median income: $67,785 | Median down payment: $8,563
- Houston, TX – 3.5 years: Median income: $83,452 | Median down payment: $14,927
- Birmingham, AL – 4.2 years: Median income: $73,644 | Median down payment: $15,563
In these more affordable markets, buyers earn enough relative to home prices — and often face less competition — that homeownership remains realistically within reach in just a few years.
Summary
Seven years has become the “new normal” for saving a down payment in today’s post-pandemic housing market — a far cry from the pre-2020 reality, but a huge improvement from the darkest days of 2022.
If you’re dreaming of owning a home, the data is clear: start saving now, even if it’s just a little each month. In many parts of the country, that discipline can turn the dream into reality in just a couple of years. In others, it will take longer — but consistency and patience still win.
Ready to take the first step? Automate your savings, explore down payment assistance programs, or consider more affordable markets — because for millions of Americans, homeownership is still very much worth the wait.
Are you thinking of buying or selling real estate in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search App for your smartphone or tablet.
