Realtor.com reports seven years needed to save for typical U.S. down payment in 2025

Saving for a down payment remains one of the biggest barriers to homeownership in the U.S., even as housing market conditions improve. In 2025, the typical U.S. household needs seven years to save for a typical down payment, a significant improvement from the peak of 12 years in 2022, according to a new analysis from Realtor.com®. 

While the timeline has shortened as home price growth has cooled and affordability has modestly improved, it remains roughly double the pre-pandemic norm, reflecting both higher down payment amounts and a persistently lower personal savings rate. 

“Higher home prices and intensified competition have pushed typical down payments higher, at the same time that inflation and rising household expenses have reduced savings rates,” said Danielle Hale, chief economist at Realtor.com®. “Although conditions have improved since 2022, today’s timeline shows that saving for a home takes meaningfully longer than it did before the pandemic, especially in high-cost markets.” 

Lower Savings Rates and Higher Down Payments Extend Timelines 

The U.S. personal savings rate has averaged 5.1% of income so far in 2025, below the pre-pandemic norm of 6.5% and far below pandemic-era highs, limiting how quickly households can accumulate funds for upfront housing costs. At the same time, high home prices and increased competition have pushed down payments higher. 

In the third quarter of 2019, the typical buyer paid about $13,900 as a down payment. By the third quarter of 2025, that figure had more than doubled to $30,400, significantly extending the time required to save. 

The time needed to save for a typical down payment briefly peaked at roughly 16 years in April 2022, more than triple pre-pandemic norms, before falling to about seven years in recent data as competition cooled and affordability gradually improved. 

Decades of Saving in the Most Expensive Markets 

In many high-cost coastal metros, saving for a typical down payment can take 20 to more than 35 years, effectively pricing out many first-time and moderate-income buyers. 

“In high-cost markets, the typical down payment alone exceeds a full year of household income,” said Hannah Jones, senior economic research analyst at Realtor.com®. “That reality makes homeownership feel unattainable for many buyers, particularly younger households trying to enter the market for the first time.” 

Affordable Southern Metros and Military Hubs Offer Faster Paths 

In contrast, many Southern metros and areas with high VA loan usage require less than five years to save for a typical down payment. Smaller down payments, combined with solid household incomes, make homeownership more attainable in these regions.