With home prices and mortgage rates remaining elevated, some hopeful buyers in the United States would need more than 10 years to save up for the down payment to afford a median-priced home.
A buyer making the national median income of $82,156 would likely need about 12 years to save up the down payment of $127,743 for a typical home costing $360,681. That is according to a recent study by Zillow, which noted that buyers would need to put in a 35.4% down payment to comfortably afford monthly mortgage payments.
In the study, comfortably affordable means a buyer would not need to spend more than 30% of their income on housing costs. This covers insurance costs, mortgage payments, and property taxes.
The time needed to save up for a down payment varies depending on the average home price and median income in an area. The study calculated the required down payment and savings period for each of the 50 metro areas in the U.S.
Metro Areas Where Buyers Save for 20 Years To Buy a Home
Sacramento
Median Home Price: $586,875
Down Payment Needed: $337,769
Years to Save: 21.7
Boston
Median Home Price: $701,349
Down Payment Needed: $432,875
Years to Save: 23.1
Riverside, CA
Median Home Price: $584,710
Down Payment Needed: $358,926
Years to Save: 23.6
Seattle
Median Home Price: $753,414
Down Payment Needed: $462,095
Years to Save: 23.7
Miami
Median Home Price: $490,088
Down Payment Needed: $316,270
Years to Save: 24.1
New York
Median Home Price: $657,279
Down Payment Needed: $494,795
Years to Save: 27.4
San Francisco
Median Home Price: $1,183,272
Down Payment Needed: $887,656
Years to Save: 31.5
San Diego
Median Home Price: $958,266
Down Payment Needed: $723,527
Years to Save: 32.5
San Jose, CA
Median Home Price: $1,631,252
Down Payment Needed: $1,320,275
Years to Save: 36.2
Los Angeles
Median Home Price: $962,388
Down Payment Needed: $780,203
Years to Save: 36.3
