It Now Takes 10+ Years to Save For a Down Payment on a Home [New LendingTree Report]

With home prices still high, saving enough for a down payment has become a major financial roadblock to homeownership.

Our latest analysis of over 1 million LendingTree mortgage purchase inquiries shows down payments are rising faster than incomes. In some states, buyers need more than a decade to save for a down payment. Here's a look at the details:

• The median planned down payment hit $45,000 in 2024, up from $37,624 (inflation-adjusted) in 2021. That now equals more than six months of median household income — nearly a full month more than just three years ago.
• The median down payment climbed from 10% to 15% of the loan amount from 2021 to 2024. In dollars, the median down payment rose 19.6% in just three years. 
• At a typical 5% household savings rate, the average buyer would need 10.7 years to save for a median down payment, up from 9.3 years in 2021.
• Buyers need 10.3 months of income for a median down payment in California— the highest nationwide — followed by Massachusetts (9.7 months) and Washington (9.1 months).  West Virginia is the most affordable, at 4.4 months of income.

You can check out the full report and state rankings here: https://www.lendingtree.com/home/mortgage/down-payment-income-study/

LendingTree's Chief Consumer Finance Analyst, Matt Schulz, had this to say: 

“The typical buyer now plans to put down $45,000, a huge jump from just three years ago. Even then, it’s still short of 20%, and at a normal savings pace, it would take the average household more than a decade just to scrape that money together.”

Post to Social Media: