Where it Takes the Longest to Save for a Down Payment

One of the biggest challenges to homeownership is saving for a down payment. In some cities, where list prices are higher, it can take approximately 15 years, but in other cities, it takes far less time to save.

A recent report from the National Association of Realtors analyzes how long it takes the typical first-time homebuyer to save for a down payment in cities across the U.S. Rather than assuming a standard 20% down payment, the report looks at how long it takes to save in 180 of the largest U.S. metros based on the median down payment typically made by local buyers in their respective markets.

Where does it take the longest to save for a down payment?

The West Coast—especially California—is home to some of the most expensive home prices. In San Jose, Calif., the typical first-time buyer puts down about 24%, which means that they need about $382,000 in cash. Even with a median household income of about $165,000, saving 15% of that income amounts to around $24,700 a year. That’s about 15 years to save the down payment.

Los Angeles and San Luis Obispo, Calif., follow at 14 years. Meanwhile, in San Francisco, San Diego, Salinas, Calif., and Santa Barbara, Calif., it takes about 12 years to save for a down payment.

Meanwhile, in the Midwest, it takes the shortest amount of time

In the Midwest, it takes around two to three years to save for a down payment. For instance, in Jackson, Mich., it takes two years to save for a down payment, and in Davenport, Iowa, and Toledo, Ohio, it takes three years.