Timescales for Securing Down Payment for a Home in Every State: Breakdown
In a recent study by Leave the Key Homebuyers, the time required to save for a 10% down payment on a median-priced home has been found to vary significantly by state, based on average incomes and housing prices.
The study, which utilised data from the Bureau of Economic Analysis and the U.S. Census, reveals that Hawaii is the hardest state to save in, with an average worker needing to work approximately 28 years and 10 months (about 221,008 workdays) to save for a 10% down payment on a median-priced home costing $846,600. In contrast, Florida offers a much shorter saving period of about 7 years and 1 month (1,782 workdays) for a median-priced home of $381,000.
The study found that the average time needed to save for a 10% down payment ranges from 10 years and 6 months in California to just over 2 years in Wyoming and the Dakotas. States with higher home prices and relatively lower incomes require significantly longer saving periods, while states in the Southeast, Midwest, and even some Northeastern states offer a more realistic saving timeline of between 3 to 5 years.
The longer saving times in some states are attributed to high housing demand, low income levels, high cost of living, restrictive zoning laws, and limited housing supply. However, the American dream of owning a home remains within reach, requiring planning, perseverance, and some luck.
For those considering investment properties, new listings have been added for promising cities across the U.S. Norada connects investors with high-demand, cash-flowing rental properties in the top real estate markets of 2025. Information about the top 15 real estate markets to buy investment properties, the top 20 hottest housing markets predicted for 2025, and the 5 hottest real estate markets for buyers and investors in 2025 is readily available.
First-time homebuyers may find alternative locations, boosting income, getting serious about budgeting, and talking to a financial advisor helpful in making the dream of homeownership more attainable. Information about the top 10 housing markets where Gen Zs are buying homes, the top 10 hottest housing markets predicted for 2025: Sun Belt Boom, the top 10 places with the worst housing crisis outlook in 2025, and the top 10 housing markets seeing incredible double-digit growth in 2025 is also available.
Speaking with expert investment counselors is an option for those seeking guidance (with no obligation). The study serves as a valuable resource for those looking to navigate the complex landscape of homeownership and real estate investment in the U.S.
- The study by Leave the Key Homebuyers suggests that the time needed to save for a 10% down payment on a median-priced home varies considerably among states, influenced by factors such as housing prices, incomes, and the cost of living.
- In Hawaii, saving for a 10% down payment on a median-priced home requires an average of 28 years and 10 months, equating to about 221,008 workdays, the longest time among all states.
- Florida, on the other hand, offers a more favorable saving period of approximately 7 years and 1 month (1,782 workdays) for a median-priced home.
- The study indicates that states with high home prices and lower incomes necessitate longer saving periods, whereas states in regions like the Southeast, Midwest, and some Northeastern states offer a more feasible saving timeline of around 3 to 5 years.
- For those interested in real estate investment, information about promising cities and top real estate markets for 2025 are available through services like Norada, which connects investors with high-demand, cash-flowing rental properties.
- First-time homebuyers may find it beneficial to consider alternative locations, increase income, tighten budgeting, and consult with a financial advisor to achieve the dream of homeownership.
- Various resources are available, including insights into the top 10 housing markets preferred by Gen Zs, the top 10 hottest housing markets predicted for 2025, and the top 10 housing markets seeing exceptional growth.
- Speaking with expert investment counselors can provide valuable guidance for navigating the intricate domestic landscape of homeownership and real estate investment, making informed decisions, and achieving personal-finance goals.
