A new Realtor.com analysis finds that the time required for the typical U.S. household to save for a home downpayment has improved in 2025, easing one key affordability barrier in the housing market.
According to the report, prospective buyers now need approximately seven years of savings at the national average personal savings rate to accumulate a typical U.S. median downpayment — down sharply from the 12-year average reported in 2022 at the height of affordability pressures.
Despite this improvement, the current seven-year timeframe remains roughly double the pre-pandemic norm, underscoring persistent challenges tied to elevated downpayment amounts and a lower savings rate compared with historical averages. These factors continue to compress buyer capacity, particularly for first-time and moderate-income households.
"Higher home prices and intensified competition have pushed typical downpayments 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."
For the analysis, Realtor.com assumes a 5.1% national savings rate, the average for 2025, and median household income data to estimate annual downpayment accrual. Even with slowing home price growth and modest improvements in market conditions, higher required downpayments relative to incomes remain a core driver of extended savings timelines.
Geographic Disparities Highlight Market Variability
Mortgage originators should note significant regional disparities in down payment savings timelines:
In high-cost coastal metros, the time to save a competitive downpayment can stretch to 20 to more than 35 years, effectively pricing many buyers out of homeownership. For example, metro areas like San Francisco and San Jose exhibit extreme timelines exceeding three decades due to very high median down payment requirements relative to income.
Conversely, more affordable Southern metros and military-oriented markets — where VA loans and lower median downpayment requirements are more prevalent — frequently deliver timelines under five years, presenting more attainable entry points for buyers with more disciplined savings tactics.
Implications for Originators and Buyers
For mortgage originators, the seven-year benchmark reinforces the ongoing need to educate clients on realistic savings horizons and to explore financing pathways that can reduce upfront barriers, including low-downpayment products and targeted assistance programs. While the savings timeline has improved from the 2022 peak, it remains a significant planning factor for buyer readiness and loan structuring.
