Realtor.com Reports U.S. Households Need 7 Years to Save for Down Payment Amid Housing Market Changes
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
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Source: Newsfilter
- Down Payment Timeline: In 2025, the typical U.S. household requires seven years to save for a down payment, a significant improvement from 12 years in 2022, yet still double the pre-pandemic norm, reflecting the dual pressures of higher down payments and lower savings rates.
- Declining Savings Rates: The personal savings rate in 2025 averages 5.1%, down from the pre-pandemic 6.5%, limiting households' ability to accumulate funds for housing costs, with down payments increasing from approximately $13,900 in 2019 to $30,400 by 2025.
- Challenges in High-Cost Markets: In many high-cost coastal metros, the time needed to save for a typical down payment can reach 20 to 35 years, effectively pricing out many first-time and moderate-income buyers, exacerbating the affordability crisis in these markets.
- Advantages of Southern Metros: In contrast, many Southern metros and military hubs require less than five years to save for a down payment, with smaller down payments and solid household incomes making homeownership more attainable, particularly due to widespread VA loan usage that reduces upfront cash requirements.
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News Corporation is a diversified media and information services company. Its Digital Real Estate Services segment consists of the Company’s interest in REA Group and Move. REA Group is a digital media business specializing in property and property-related services on its Websites and mobile apps. Move is a provider of digital real estate services in the United States and primarily operates a real estate information, advertising and services platform, as well as its referral-based services, online tools and services to do-it-yourself landlords and tenants. Its Dow Jones segment consists of Dow Jones, a global provider of news and business information, which distributes its content and data through a variety of media channels. Its Book Publishing segment consists of HarperCollins, a consumer book publisher with operations in 15 countries. Its News Media segment consists of News Corp Australia, News UK and the New York Post and includes The Australian, The Daily Telegraph, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
