Owning a home is part of the American Dream, but it’s out of reach for a lot of folks. Some don’t even get past saving up for a down payment, which is one of the first steps for homebuyers. New research from Realtor.com reveals that it now takes the typical U.S. household seven years to save for a down payment.
That seems like a really long time, and it is, but it’s a big improvement from the peak of 12 years that was the average in 2022, when down payments and home prices spiked. According to the most recent data, the typical U.S. down payment is now $30,400, as of the third quarter of 2025.
- To compare, back in 2019, the typical home shopper put down slightly less than $14-thousand. Now it’s more than double that.
- But this is a big country and the amount of time it takes to save for a down payment varies drastically by region. In some affordable metro areas in the country with a large military population, it’s less than two years, but in the priciest coastal city, it can stretch to nearly four decades.
- The thing is, down payment amounts have skyrocketed thanks to higher home prices and fierce competition for available homes, especially on the coasts.
- According to Realtor.com senior economic research analyst Hannah Jones, saving for a down payment continues to be one of the biggest hurdles to home ownership.
- San Antonio, Texas, has the shortest down payment saving time, just a year and three months.
- Known as “Military City USA,” it’s home to a massive number of current and former service members who can use VA loans, which have some of the lowest down payment barriers.
- Virginia Beach, Virginia, has the second-shortest down payment saving time. It’s home to several military installations, and the typical homebuyer there needs just two years to save for the median $8,394 down payment.
- Memphis, Tennessee, is third with a saving time of two and a half years, followed by Houston, with 3.5-years and Birmingham, Alabama, with four years and two months.
- San Francisco has the longest down payment saving time, a whopping 36.5-years. The typical down payment in the California city now tops $245-thousand.
Source: Realtor.com
Scott's Thoughts:
- No wonder so many people are now lifelong renters!
- I wonder if it is really worth the sacrifice?
- Home is where you hang your hat.