AUSTIN – (By Dale King, Realty News Report) – Saving up sufficient cash to make a down payment remains one of the principal barriers to homeownership in the U.S. real estate market, even as conditions in that arena have improved, says new data from Realtor.com.
Actually, the time period to cobble enough bucks to get a foot in the door of a typical new residence varies by region, from five years or less in the South to as much as half a lifetime in several high-priced West Coast areas.
The Realtor.com analysis says that in 2025, it took the average American household seven years to squirrel away enough cash to cover a typical down payment. Still, that’s much better than the peak of 2022 when it took 12 years to build up an adequate payout.
While the timeline shortened as home price growth cooled and affordability improved modestly, the task of tucking away the necessary cash to cover the down payment remains roughly double the pre-pandemic level, reflecting both higher down payment sums and a persistently lower percentage of personal savings.
“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 longer than it did before the pandemic — especially in high-cost markets.”
Timeline still long
Realtor.com’s scrutiny found that the typical personal savings rate averaged 5.1% of annual income during most of 2025 — below the pre-pandemic norm of 6.5% and far below pandemic-era highs, limiting how quickly households can build up the money to pay upfront housing costs. At the same time, high home prices and increased competition have pushed down payment totals upward.
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 tuck away the essential wad of Benjamins.
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 last year as competition cooled and affordability gradually improved.
Texas metros beat down payment ‘clock’
The Realtor.com report says several Texas metros can provide more reasonable timelines to reach a sufficient figure to seal a home purchase deal.
In fact, San Antonio-New Braunfels area savers who earmark an average of 5.1% of their annual income (about $3,921) for a down payment can reach that goal in just 15 months – the shortest in the U.S.
The Houston-Pasadena-The Woodlands metro provides another fast track to a full down payment. If homeowner wannabes keep to a 5.1% savings pace (about $4,228), Houstonians can tally a total home sale down payment in 3.5 years, says the report.
Residents of the Dallas-Fort Worth-Arlington area with a home purchase in mind can tuck away 5.1% of income and reach the down payment goal line in 5.4 years. Those residing in Austin-Round Rock-San Marcos need a little more time to reach the mark. The Realtor.com study says those folks require 8.2 years to hit the target
Metros with longest timelines
“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.”
San Francisco-Oakland sets the highest bar. Would-be home buyers would have to save 5.1% of annual income for 36.5 years to settle in the ‘City by the Bay.”
The First Step is Saving
While homeownership is a pricy endeavor, roughly three-quarters of Americans still consider owning a home to be part of the American dream. For first-time buyers who hope to make the ‘dream’ come true someday, easing rents offer an opportunity to boost personal savings to help them move closer to the down payment objective.
Repeat buyers who feel locked into their current low mortgage rate but still plan to buy a new house in the future can also use increased savings to reduce their next loan size and help offset higher monthly payments.
In the end, says Realtor.com, setting a clear savings goal and consistently putting money aside is a meaningful first step toward homeownership, even in today’s challenging housing and economic environment.
Jan. 17, 2026 Realty News Report Copyright 2026
Image: Realty News Report Copyright 2026
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