"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 rate, Danielle Hale, chief economist at Realtor.com, said in a statement. Although conditions have improved since 2022, today's timeline shows that saving for a home takes meaningfully longer than it did before the pandemic, especially in high-cost markets."
"At the other end of the spectrum, Realtor.com found that many Southern markets and areas with high utilization of U.S. Department of Veterans Affairs (VA) loans had the shortest timelines. VA loans don't have down payment requirements, and some lenders have begun to introduce options that eliminate closing costs. San Antonio led the way with an average savings timeline of only 1.3 years. The median down payment for a homebuyer there in 2025 was $5,067."
Higher home prices and intensified competition have increased typical down payments while inflation and rising household expenses have reduced savings rates. Saving for a home now takes meaningfully longer than before the pandemic, especially in high-cost metros. In some locations, the time needed to save for a down payment can stretch into decades, effectively pricing out many first-time and moderate-income buyers. The average household saved 5.1% of income in 2025, down from a pre-pandemic rate of 6.5% and far below post-pandemic peaks. Coastal metros show the longest timelines while many Southern and VA-heavy markets show much shorter timelines.
Read at www.housingwire.com
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