Realtor.com®: It Takes 7 Years to Save for a Down Payment, Down From 2022 Peak of 12 Years
Rhea-AI Summary
Realtor.com (NWS) reports the typical U.S. household needs 7 years to save for a down payment in 2025, down from a peak of 12 years in 2022 and a brief peak of ~16 years in April 2022. The typical down payment rose to $30,400 (Q3 2025), more than double the Q3 2019 level of $13,900. The U.S. personal savings rate averaged 5.1% in 2025 versus a pre-pandemic norm of 6.5%, slowing accumulation. High-cost coastal metros show extreme timelines (20–36+ years), while many Southern metros and military hubs require under five years.
Positive
- Typical U.S. years to down payment: 7 years in 2025
- Typical down payment: $30,400 (Q3 2025), >2x Q3 2019
- Several Southern metros and military hubs require <5 years
Negative
- High-cost coastal metros: 20–36.5 years to save (San Francisco 36.5)
- U.S. personal savings rate: 5.1% in 2025, below pre-pandemic 6.5%
- In some metros typical down payment exceeds one year of household income
News Market Reaction – NWS
On the day this news was published, NWS declined 0.23%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Pre-news, NWS slipped 0.47% with mixed moves among peers: NWSA -0.57%, TKO -0.15%, while WMG +0.40%, ROKU +1.34%, and FOXA +0.42%, suggesting stock-specific rather than broad sector trading.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 23 | PropTech competition | Positive | +0.4% | Realtor.com and NAR launch PropTech Startup Showdown with prize and exposure. |
| Dec 22 | Housing market report | Neutral | +0.3% | Luxury housing report showing mixed price trends and divergent selling speeds. |
| Dec 18 | Flipping analysis | Neutral | +0.5% | Analysis of flipped homes’ online interest, time on market, and pricing discounts. |
| Dec 16 | Rent affordability report | Neutral | +0.7% | Realtor.com rent report on median asking rents and minimum-wage affordability. |
| Dec 15 | Brand extension launch | Positive | -1.3% | Launch of WSJ Opinion’s Free Expression newsletter-first brand extension. |
Recent Realtor.com and WSJ content/news launches have generally seen modestly positive single-day moves, with one notable negative reaction to a WSJ Opinion brand extension.
Over the past two weeks, NWS news has focused on Realtor.com housing analytics and Wall Street Journal brand initiatives. Reports on luxury housing, rental affordability, and flipping dynamics around Dec 15–23, 2025 were followed by small positive moves between 0.34% and 0.72%. A WSJ Opinion newsletter launch on Dec 15, 2025 coincided with a -1.31% move. Today’s nationwide down-payment analysis continues the pattern of Realtor.com data-driven housing research updates.
Market Pulse Summary
This announcement highlights how long U.S. households typically need to save for a home down payment, with a current estimate of 7 years versus a peak of 12 years in 2022. It underscores pressures from a lower 5.1% savings rate and higher typical down payments of $30,400. For NWS, it adds another Realtor.com data release to a steady stream of housing analytics. Observers may watch how future reports, product initiatives, or regulatory filings interact with these housing affordability trends.
Key Terms
va loan financial
AI-generated analysis. Not financial advice.
High-cost coastal metros require decades of saving, while affordable Southern metros and military hubs remain within reach
While the timeline has shortened as home price growth has cooled and affordability has modestly improved, it remains roughly double the pre-pandemic norm, reflecting both higher down payment amounts and a persistently lower personal savings rate.
"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," said Danielle Hale, chief economist at Realtor.com®. "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."
Lower Savings Rates and Higher Down Payments Extend Timelines
The
In the third quarter of 2019, the typical buyer paid about
The time needed to save for a typical down payment briefly peaked at roughly 16 years in April 2022, more than triple pre-pandemic norms, before falling to about seven years in recent data as competition cooled and affordability gradually improved.
Decades of Saving in the Most Expensive Markets
In many high-cost coastal metros, saving for a typical down payment can take 20 to more than 35 years, effectively pricing out many first-time and moderate-income buyers.
Metros With the Longest Time to Save for a Down Payment
Metro | Jan - Nov | 2025 med | Annual 2025 Avg) | Years to |
36.5 | ||||
36.2 | ||||
34.1 | ||||
30.1 | ||||
23.4 | ||||
22.6 | ||||
20.5 | ||||
20.2 |
"In high-cost markets, the typical down payment alone exceeds a full year of household income," said Hannah Jones, senior economic research analyst at Realtor.com®. "That reality makes homeownership feel unattainable for many buyers, particularly younger households trying to enter the market for the first time."
Affordable Southern Metros and Military Hubs Offer Faster Paths
In contrast, many Southern metros and areas with high VA loan usage require less than five years to save for a typical down payment. Smaller down payments, combined with solid household incomes, make homeownership more attainable in these regions.
Metros With the Shortest Time to Save for a Down Payment
Metro | Jan - Nov | 2025 med | Annual 2025 Avg) | Years to |
4.8 | ||||
4.7 | ||||
4.6 | ||||
4.2 | ||||
4.2 | ||||
3.5 | ||||
2.5 | ||||
2.0 | ||||
1.3 |
Military hubs, in particular, benefit from widespread VA loan usage, which often allows buyers to purchase with little or no down payment, shifting savings toward closing costs rather than large upfront cash requirements.
The First Step Toward Homeownership
While affordability challenges persist, roughly three-quarters of Americans still consider owning a home part of the American dream. For first-time buyers, easing rents may offer an opportunity to increase savings, while repeat buyers can use savings to reduce future loan balances and manage higher monthly payments.
"Saving consistently, even in small amounts, is a meaningful first step toward homeownership,"
Methodology
Using the monthly personal savings rate through September 2025, annual estimated median household income, and monthly median down payment dollar amount data, we estimated how many years it would take to save for a down payment in the US and in the 50 largest
About Realtor.com®
Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.
Media Contact: Emily Do, press@realtor.com
View original content:https://www.prnewswire.com/news-releases/realtorcom-it-takes-7-years-to-save-for-a-down-payment-down-from-2022-peak-of-12-years-302648871.html
SOURCE Realtor.com
FAQ
How long does it take to save for a down payment in the U.S. in 2025 (NWS)?
What was the typical down payment amount in Q3 2025 for NWS analysis?
Which U.S. metros have the longest time to save for a down payment in 2025?
Which metros offer the fastest path to a down payment per Realtor.com (NWS)?
How did U.S. savings behavior affect down payment timelines in 2025?
Did saving timelines improve since 2022 according to Realtor.com (NWS)?
