How long does it take to save for a down payment in 2025?
Summary
According to a Realtor.com report, the time it takes to save for a down payment in the US is about 7 years, though this varies greatly by location. Hosts in high-cost markets should be aware of these trends as they affect the affordability of properties and potential investment returns.
Key Insights
- •The median down payment of $30,400 in Q3 2025 was more than double the pre-pandemic figure of $13,900 in Q3 2019.
- •Coastal metros like San Francisco, San Jose, Los Angeles, New York, Seattle, and Boston have the longest timelines to save for a down payment.
- •The typical household in 2025 needs seven years to save for a down payment across the 50 largest U.S. metro areas. This is down from 12 years in 2022.
Action Items
- ✓Consider the local market dynamics when evaluating potential investment properties. High-cost markets may have longer return timelines due to affordability issues.Effort: mediumImpact: medium
- ✓Research markets with shorter down payment timelines (e.g., Southern markets) if you're looking for areas with potentially faster investment returns, although these are also prone to more risks as they are typically less established markets.Effort: mediumImpact: medium
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