Want to buy a house in the US? How long will it take to save for a down payment?

Saving for a downpayment is the first step towards homeownership. This can be done before you start looking at properties, speaking with a real-estate agent, or researching current market trends. This is one of the most time-consuming and difficult aspects of buying a house. According to the National Association of Realtors® Profile of Home Buyers & Sellers38% of first time homebuyers said that saving for a deposit was the most difficult part of the home buying process. This is understandable, given that 54% of buyers rely on personal funds to fund their down payments.  So if you’re a prospective buyer hoping to get into the market soon, how long does it actually take to save for a down payment? 

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Zoocasa calculated how long a household with a median income would need to save up for a 15% downpayment in 50 US cities. We then calculated the number of years it would take a household earning the median income to save 15%, assuming that they were saving 10% of their income. According to the National Association of Realtors®, in 2023 the median percent down payment for all home buyers was 15%.

You can realize your home ownership dreams the fastest with BuffaloIt takes 4.9 years for a 15% deposit of $33,000 to be saved. Despite having a moderate median household income of $68,014, Buffalo’s affordable single-family home price – around $170,000 below the national median price of $393,500 – helps to push the city to the top of the list. PittsburghYou can also find out more about the following: WichitaTo save 15% of the down payment, you will need to save $31,530 for one and $31,590 for the other. 

In the top five cities where saving for a deposit is the easiest, those in Virginia BeachWith a median household income of $87.544, Virginia Beach has the highest income. Virginia Beach buyers need only 5.7 years to save up for a 50% down payment, which is $50,250. Oklahoma CityThe top 5 are rounded out by a 15% downpayment of $37,500. With a median household earning of $64,251, it will take you 5.8 years to save up for a downpayment. 

In most cities, it takes prospective buyers over 8 years to save up for a downpayment. Even in cities that are relatively affordable, such as AlbuquerqueYou can also find out more about the following: HoustonThe reason for this is that, with median household incomes hovering around $60,000 in both Albuquerque, and Houston, homebuyers will need more time to accumulate savings compared to those who live in higher-earning areas. Homebuyers in Albuquerque, Houston and other cities with median household incomes around $60,000 need more time to save. AtlantaYou can also find out more about Austin. 

With that being said, higher incomes don’t always translate to shorter savings times if the home prices are also exceedingly high. For example, in San FranciscoThe median household income in San Francisco is $136 689, but the median price of a home is $1 386 500 – almost 10 times the annual household income. Homebuyers in San Francisco would need to save for 15,2 years before they could come up with the 15% down payment of $207,975. Homebuyers in Boston, Miami, Los AngelesThe savings timelines for each of these three scenarios are 15.1 years, 14.7 years, and 14.4 years. 

Not all big cities will require you to save a lot of money for a deposit. Seattle’s high median household income, $116 068, means that those who live there only need to save $95,058 for a 15% deposit. In the same vein, in ChicagoIn order to save 15% of the purchase price, a buyer earning the median income would need 7.1 years. PhiladelphiaIt would take only 6.5 years. 

Want to discuss your options with someone in one of these cities? Give us a ring todayLearn what properties are available within your budget.