Saving for a down payment takes patience, and for many buyers, a lot of it. New data shows that the typical U.S. homebuyer now needs about seven years to save enough money for a down payment. That wait can feel long, especially for first-time buyers trying to break into today’s housing market.
According to economists at Realtor.com, this seven-year timeline is the national average. In reality, the time needed to save varies widely depending on where you live. In some affordable cities, buyers can save in under two years. In the most expensive coastal markets, the timeline can stretch into decades.
Why the Timeline Has Improved
There is some good news. The time needed to save for a down payment is much shorter than it was just a few years ago. In 2022, the average wait peaked at about 12 years. Since then, easing home price growth, cooler demand, and slightly lower mortgage rates have helped shorten the path.
Even so, today’s timeline is still about twice as long as it was before the pandemic. One big reason is the personal savings rate. Households are currently saving just over 5% of their income, compared with more than 30% in 2020 when spending dropped sharply during lockdowns.
Rising Costs After the Pandemic
After COVID, inflation and higher living costs squeezed household budgets. Many families had less extra cash to set aside, pushing the savings rate as low as 3% in 2022 before it slowly began to recover.
At the same time, down payments themselves grew much larger. Realtor.com data shows that the typical buyer put down just under $14,000 in late 2019. By the third quarter of 2025, that figure had more than doubled to $30,400. Higher home prices and tight inventory, especially in coastal cities, pushed upfront costs higher.
Because of this mismatch between savings and prices, Realtor.com senior economic research analyst Hannah Jones says down payments remain one of the biggest barriers to homeownership.
Homeownership Is Slipping
The strain is showing up in ownership rates. In the second half of 2025, the U.S. homeownership rate fell to 65%, the lowest level since 2019, according to the U.S. Census Bureau. Realtor.com’s 2026 housing forecast expects that number to dip again, with high down payments playing a key role.
Location Makes a Big Difference
Where you live matters more than almost anything else when it comes to saving for a down payment. Realtor.com found that many Southern metros and cities with large military populations offer the shortest saving timelines among the 50 largest U.S. metro areas.
In these markets, home prices are lower relative to incomes, and many buyers qualify for low- or zero-down loan programs. As a result, saving often takes less than five years.
Military Cities Offer the Fastest Path
Cities near major military bases stand out the most. A high share of buyers in these areas use Veterans Affairs loans, which often require no down payment. Instead of saving for a large upfront amount, buyers can focus on closing costs.
San Antonio, Texas, home to Joint Base San Antonio, tops the list. Known as “Military City USA,” it has the shortest down payment saving time in the country, at just one year and three months. From January through November 2025, the median down payment there was only $5,067.
Virginia Beach, Virginia, ranks second. With major naval installations nearby, buyers there typically need about two years to save for a median down payment of $8,394.
Affordable Markets Ease the Burden
Beyond military hubs, cities like Houston, Texas, and Birmingham, Alabama, also offer more affordable options. These markets tend to have more lower-priced listings, giving buyers more room to save compared with high-demand Northeastern and West Coast metros.
The takeaway is clear: saving for a down payment is still hard, but it is not equally hard everywhere. For buyers who are flexible about location, choosing the right market can cut years off the path to homeownership. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
