Here’s How Long It Now Takes To Save for a Down Payment on a Home

The typical U.S. homebuyer now requires about seven years to save for a down payment, but the timeline varies dramatically by region, from less than two years in an affordable metro with a large military population to nearly four decades in the priciest coastal city. 

The good news for households looking to venture into the housing market is that, amid cooling demand, easing mortgage rates, and improving affordability in 2025, the down payment saving timeline has shortened considerably from a recent peak of 12 years in 2022, according to a new report from Realtor.com® economists. 

However, the current time to save is still approximately double pre-pandemic levels, in part because the personal savings rate currently hovers just above 5%, down from more than 30% in 2020.

As inflation and the cost of living increased in the post-COVID-19 years, many households were stretched thin, leaving little discretionary income to put aside—and pushing the savings rate down to 3% in 2022, before it began to gradually recover. 

At the same time, down payment amounts have skyrocketed as a result of elevated home prices and intensifying competition for scarce inventory, particularly on the coasts.  

For context, the typical home shopper put down just under $14,000 in the third quarter of 2019; by the third quarter of 2025, that upfront amount had more than doubled to $30,400.  

Despite moderately improving conditions, including expanding inventory and easing prices, down payments remain high while the savings rate is still low compared with five years ago. For these reasons, Realtor.com senior economic research analyst Hannah Jones says that saving for a down payment continues to be one of the biggest hurdles to homeownership.

In the second half of 2025, the U.S. homeownership rate decreased to 65%, the lowest since 2019, according to figures from the U.S. Census Bureau. 

The Realtor.com 2026 national housing forecast projects that the new year will see the rate fall even further, hitting 64.8%, with elevated down payments identified as a key contributing factor.  

Shorter saving timeline in military towns

Geography plays a crucial role in virtually every aspect of the housing market—and down payment saving timelines are no exception.

New Realtor.com data analysis shows that affordable Southern cities and areas with major military populations offer the shortest timelines for saving for a down payment among the 50 largest U.S. metros.

"In these regions, smaller down payments combined with relatively robust household incomes lead to manageable saving timelines, often under five years," says Jones.

The analyst explains that cities that house military installations and locations with increased levels of Veterans Affairs loan usage have some of the lowest down payment barriers, because a high share of local homebuyers have access to zero-down financing. 

So instead of spending their savings on a hefty down payment, home shoppers put their money toward closing costs. 

A VA loan is a mortgage option backed by the Department of Veterans Affairs. It's available to veterans, current service members, and their spouses. The VA guarantees a portion of the loan, and it is also financed by private mortgage lenders and banks.

Unsurprisingly, San Antonio, TX, home of Joint Base San Antonio—the largest joint base in the U.S. with a massive concentration of current and former service members—stands out for having the nation's shortest down payment saving time, at just a year and three months.  

From January through November 2025, the median down payment in San Antonio, dubbed "Military City USA," amounted to just $5,067—the lowest among the top 50 metros. 

In November, the median listing price in San Antonio was about $325,000, or more than $90,000 below the national median, according to the latest available housing market trends report from Realtor.com.

Second on the list of markets with the shortest saving times is Virginia Beach, VA, home to Naval Air Station Oceana and Joint Expeditionary Base Little Creek–Fort Story. The typical homebuyer there needs just two years to save up for the median $8,394 down payment.

Memphis, TN, ranks third, with a saving time of 2.5 years, followed by Houston, at 3.5 years, and Birmingham, AL, in fifth place with four years and two months. 

"Beyond the military metros on the list, many of these areas boast strong income levels relative to home prices," notes Jones. "Put differently, potential buyers in these markets tend to earn enough money that homeownership is within reach."

Cities such as Houston and Birmingham have more listings at lower price ranges than those in many other metros, giving buyers extra breathing room compared with in-demand Northeastern metros where inventories are tight and competition for homes is fierce.

Down payment saving woes in coastal metros

In some of the nation's most expensive housing markets—many of them situated along the coasts—the typical buyer must work anywhere between 20 and 37 years to save up enough money for a down payment on a house.

San Francisco has the highest down payment saving time of 36.5 years. 

Although the median household income in "The Golden City" exceeded $132,000 in 2025, well above the national median of roughly $83,000, the typical down payment in San Francisco from January through November topped $245,000. 

In neighboring San Jose, CA, in the heart of the affluent San Francisco Bay Area, a household earning $166,000 would have to set aside cash for 36.2 years to come up with the median down payment of $304,623, the highest among the 50 largest metros. 

Notably, San Jose is the nation’s most expensive housing market, with a median listing price of roughly $1.3 million as of November. 

Los Angeles ranks third, with the typical home shopper needing more than 34 years to put together a down payment of $170,000. It is followed by another Golden State metro, San Diego, where the saving time exceeds 30 years. 

Out on the East Coast, New York City has the longest regional saving time, with the typical buyer being forced to work over 23 years to amass enough money for a $121,800 down payment. 

What sets these top-dollar metros apart is that they all have a limited supply of for-sale inventory combined with high demand, putting upward pressure on prices. 

“The eye-popping time to save for a down payment in these areas underscores that, in high-priced metros, owning a home is a luxury, and often only accessible to wealthy or ultrawealthy households," points out Jones. "In these metros, the typical down payment would more than consume the typical household's entire annual salary."

While purchasing a home can be daunting, especially in big-budget markets, Jones says the first step on the way to homeownership is making a plan to save. 

For aspiring first-time buyers, decreasing rents offer an opportunity to set more money aside toward a future down payment at the end of each month.

Meanwhile, existing homeowners looking to upgrade can step up their savings rate to reduce their next home loan amount and help offset higher monthly payments. 

"Ultimately, setting a clear savings goal and consistently putting money aside is a meaningful first step toward homeownership, even in today’s challenging housing and economic environment," concludes the analyst.