T
ypical U.S. homebuyers now need about seven years to amass a down payment, but the required time swings wildly by location. In some affordable southern metros with large military bases, the period can be under two years, whereas in the most expensive coastal cities it can stretch to nearly forty years.

    The good news is that the saving window has narrowed sharply in 2025. A new Realtor.com report shows the average time fell from a 12‑year peak in 2022 to roughly seven years today. Still, it remains roughly twice the pre‑pandemic pace because the personal savings rate sits just above 5%, down from over 30% in 2020. Post‑COVID inflation and living‑cost hikes left many households with little discretionary income, pushing the savings rate to a low 3% in 2022 before a slow rebound.

    At the same time, down‑payment amounts have surged. Home prices and competition, especially on the coasts, have driven the typical upfront cost from just under $14,000 in Q3 2019 to $30,400 by Q3 2025. Even with modest inventory gains and price easing, down‑payments stay high while savings rates lag, making them a major barrier to ownership.

    Homeownership rates fell to 65 % in the second half of 2025, the lowest since 2019, and the 2026 forecast projects a further dip to 64.8 %, with steep down‑payments cited as a key driver.

    **Geography matters**

    Affordable southern cities and military hubs offer the shortest saving timelines. In these areas, smaller down‑payments and solid household incomes keep the period under five years. Military towns benefit from VA loans, which often require zero down‑payment, allowing buyers to allocate savings to closing costs instead. San Antonio, home to Joint Base San Antonio, tops the list with a saving time of just 15 months and a median down‑payment of $5,067. The city’s median listing price was about $325,000, well below the national median.

    Other military metros follow: Virginia Beach (2 years), Memphis (2.5 years), Houston (3.5 years), and Birmingham (4 years 2 months). These markets combine strong incomes with relatively affordable home prices, giving buyers a realistic path to ownership.

    **Coastal cost‑crushers**

    In contrast, the nation’s most expensive markets demand decades of saving. San Francisco requires 36.5 years, San Jose 36.2 years, Los Angeles over 34 years, San Diego over 30 years, and New York City more than 23 years. Median down‑payments in these metros exceed $120,000, with San Jose’s at $304,623 and San Francisco’s at $245,000. Limited inventory and high demand push prices upward, making homeownership a luxury for the wealthy.

    **What this means**

    The stark differences underscore that in high‑priced metros, a typical down‑payment can consume an entire annual salary, while in military and affordable southern towns, buyers can reach the goal in a few years. The persistent low savings rate, even as down‑payments rise, remains a critical hurdle.

    **Practical steps**

    First‑time buyers can benefit from lower rents, freeing more money for a down‑payment. Existing homeowners aiming to upgrade should boost their savings rate to reduce the loan amount and ease monthly payments. Setting a clear savings target and consistently contributing—no matter how small—provides a tangible path toward homeownership, even in today’s challenging market.