Homebuyers Find Hope: 8 Markets with Quick Down Payment Savings

The time required to save for a home down payment has significantly decreased, now averaging around seven years in 2025. This figure marks an improvement from a peak of twelve years in 2022, according to an analysis by Realtor.com. Despite this progress, the current duration remains approximately twice as long as it was prior to the pandemic, highlighting ongoing challenges for prospective homebuyers.

While the average household is expected to save about 5.1% of their income towards a down payment, escalating home prices in various urban markets continue to complicate the situation. Danielle Hale, chief economist at Realtor.com, explained, “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.”

In the third quarter of 2019, the typical down payment was approximately $13,900. By the third quarter of 2025, this amount has surged to around $30,400, according to the same analysis. This increase reflects the broader economic realities that many potential buyers face.

High-Cost Markets Present Significant Challenges

In metropolitan areas with exceptionally high home prices, the wait for a down payment can be daunting. The San Francisco-Oakland-Fremont market, for example, currently requires a staggering 36.5 years of savings for a typical down payment. Hannah Jones, senior economic research analyst at Realtor.com, stated, “In high-cost markets, the typical down payment alone exceeds a full year of household income. That reality makes homeownership feel unattainable for many buyers, particularly younger households trying to enter the market for the first time.”

Despite these challenges, there are still affordable markets across the United States where prospective buyers can save for a down payment in under seven years. The following locations are noted for their shorter saving timelines:

1. **San Antonio-New Braunfels, TX**
Years to down payment: 1.3
Median down payment: $5,067
Median household income: $77,385

2. **Virginia Beach-Chesapeake-Norfolk, VA**
Years to down payment: 2.0
Median down payment: $8,394
Median household income: $84,890

3. **Memphis, TN-MS-AR**
Years to down payment: 2.5
Median down payment: $8,563
Median household income: $67,785

4. **Houston-Pasadena-The Woodlands, TX**
Years to down payment: 3.5
Median down payment: $14,927
Median household income: $83,452

5. **Birmingham, AL**
Years to down payment: 4.2
Median down payment: $15,563
Median household income: $73,644

6. **Jacksonville, FL**
Years to down payment: 4.2
Median down payment: $17,278
Median household income: $80,673

7. **Oklahoma City, OK**
Years to down payment: 4.6
Median down payment: $16,986
Median household income: $73,107

8. **Tucson, AZ**
Years to down payment: 4.7
Median down payment: $17,773
Median household income: $73,941

These markets provide a glimmer of hope for homebuyers seeking to enter the housing market without overwhelming financial burdens. While the overall landscape remains challenging, especially in high-cost areas, potential buyers may find more favorable conditions in these locales. As conditions continue to evolve, understanding local market dynamics will be essential for those looking to make informed decisions about homeownership.