URGENT UPDATE: The time to save for a home down payment in the U.S. has decreased significantly, now averaging just seven years as of 2025, according to a recent analysis by Realtor.com. This marks a notable improvement from a peak of 12 years in 2022, yet remains nearly double the pre-pandemic average.
Despite this progress, the median down payment has surged, currently sitting at $30,400 in the third quarter of 2025, compared to $13,900 just six years earlier. As home prices continue to climb, many aspiring buyers face a daunting challenge in saving for a competitive down payment.
Danielle Hale, chief economist at Realtor.com, explains the current landscape: “Higher home prices and intensified competition have pushed typical down payments higher, while inflation and rising household expenses have reduced savings rates. Even though conditions have improved since 2022, saving for a home takes significantly longer than before the pandemic, especially in high-cost markets.”
In major cities like San Francisco-Oakland-Fremont, California, potential buyers can expect to wait an astonishing 36.5 years to save for a down payment, where the typical down payment exceeds a full year of household income.
However, there is a silver lining. Realtor.com has identified eight U.S. markets where the time to save for a down payment is under five years. Here’s a look at these more affordable markets:
1. **San Antonio-New Braunfels, TX**
– Years to down payment: 1.3
– Median down payment: $5,067
– Median household income: $77,385
2. **Virginia Beach-Chesapeake-Norfolk, VA**
– Years to down payment: 2.0
– Median down payment: $8,394
– Median household income: $84,890
3. **Memphis, TN-MS-AR**
– Years to down payment: 2.5
– Median down payment: $8,563
– Median household income: $67,785
4. **Houston-Pasadena-The Woodlands, TX**
– Years to down payment: 3.5
– Median down payment: $14,927
– Median household income: $83,452
5. **Birmingham, AL**
– Years to down payment: 4.2
– Median down payment: $15,563
– Median household income: $73,644
6. **Jacksonville, FL**
– Years to down payment: 4.2
– Median down payment: $17,278
– Median household income: $80,673
7. **Oklahoma City, OK**
– Years to down payment: 4.6
– Median down payment: $16,986
– Median household income: $73,107
8. **Tucson, AZ**
– Years to down payment: 4.7
– Median down payment: $17,773
– Median household income: $73,941
This data reveals that while the national average for saving a down payment remains a challenge, specific markets are proving more accessible for homebuyers.
As housing markets fluctuate, potential buyers should keep a close watch on these key areas for opportunities to enter the housing market sooner than later.
Stay tuned for more updates as this story develops.
