Securing a down payment for a home is a formidable task for countless individuals across the United States. While the average time required to achieve this goal has recently seen a reduction, falling from a peak of 12 years in 2022 to approximately seven years now, this duration still far exceeds pre-pandemic figures. The convergence of escalating property values and a declining personal savings rate has intensified the difficulties faced by prospective homeowners. Despite a recommended 20% down payment, most buyers manage to put down only about 14.4% of the home's purchase price, a figure that has remained relatively stable since 2022, largely due to a buyer pool increasingly limited to affluent individuals. The stark contrast in affordability is particularly evident when comparing different regions, where saving for a down payment can take anywhere from many decades in expensive urban centers to a mere handful of years in more economically accessible areas.
The Evolving Landscape of Home Down Payments
In 2025, a significant shift was observed in the housing market, as prospective homeowners faced the challenge of accumulating funds for a down payment. According to a comprehensive report by Realtor.com, the average American household needed approximately seven years to save for the median home down payment. This marked a considerable improvement from the 12 years required in 2022, yet it still represented almost double the time needed before the onset of the pandemic. The primary drivers behind this extended saving period are two-fold: the relentless ascent of home prices and a noticeable decline in the personal savings rate among citizens.
Danielle Hale, chief economist at Realtor.com, emphasized that despite some market improvements, the path to homeownership remains significantly more protracted than in the past, particularly within the nation's most expensive markets. The median down payment saw a dramatic increase, more than doubling from $13,900 in the third quarter of 2019 to $30,400 in the same period of 2025. Concurrently, the personal savings rate dwindled to 5.1% of income in 2025, a stark contrast to the healthier 6.5% observed prior to the pandemic.
While housing finance experts traditionally advise a 20% down payment, data from Realtor.com revealed that in the third quarter of 2025, buyers typically offered around 14.4% of the home's purchase price. This percentage has remained largely consistent since 2022, suggesting that the pool of homebuyers has become more exclusive, favoring those with greater financial capacity. Hannah Jones, a senior economic research analyst at Realtor.com, noted that elevated down payments reflect a market where worsening affordability has narrowed access to only the most qualified households, who are generally capable of making larger upfront payments.
The geographical disparity in saving times is profound. For instance, in a city like San Francisco, a household earning the median income might need more than 36 years to save for the city's median down payment of $245,466. In stark contrast, a median-income household in San Antonio, Texas, or Virginia Beach, Virginia – both cities with a substantial military presence – could achieve the same goal in just one to two years, largely due to specific loan programs such as VA loans that often waive down payment requirements.
The extended time required for down payment savings carries broad economic implications. It often compels individuals to delay home purchases, trapping them in a cycle of rising rental costs. This delay also restricts access to home equity, a fundamental avenue for wealth accumulation for many Americans. On a macroeconomic scale, postponed homeownership can suppress housing demand, stifle new construction, reduce mortgage activity, and even curb consumer spending associated with moving and home improvement projects.