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
More from Pricing & Profitability
This article discusses Kansas City's high occupancy rates compared to other World Cup host cities, raising questions about the effectiveness of efforts to increase short-term rental availability. It implicitly touches on market trends and the impact of major events on the STR market. The article likely explores whether increased rental supply can meet demand while analyzing the city's approach to STRs.
Realtor.com's report on best mountain towns for Airbnb returns reveals key locations for STR investment. The analysis likely includes data on occupancy rates, ADR, and RevPAR to identify profitable markets. Understanding these trends helps hosts optimize pricing strategies and choose lucrative destinations.
Airbnb is offering a $750 incentive for some hosts in Georgia during the FIFA World Cup, potentially boosting occupancy and profitability. This program seeks to capitalize on increased demand from the international event, offering financial benefits to participating hosts. Learn how to qualify and leverage this incentive for your STR.
Curated by Learn STR by GoStudioM