Purchasing a home has become a lengthy endeavor for many in the United States. According to a report from Realtor.com published on December 29, 2025, prospective homeowners are now spending an average of seven years saving for a down payment. While this represents an improvement from the twelve years recorded in 2022, it remains nearly double the norm seen prior to the pandemic.
Challenges in the Housing Market
The report highlights several key factors contributing to this extended saving period. As stated by Realtor.com’s chief economist, Danielle Hale, “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.” This combination of rising costs and lower savings capacity has created a challenging environment for first-time buyers.
In many high-cost markets, the timeline for saving has increased significantly. The situation is particularly acute in urban areas where home prices have surged, creating barriers for potential buyers. While conditions have shown signs of improvement since 2022, the current saving timeline reflects a stark contrast to the pre-pandemic era, when saving for a down payment was generally more manageable for many families.
Impact of Economic Factors
Inflation continues to play a critical role in shaping the homebuying landscape. As living expenses rise, households find it increasingly difficult to allocate funds toward long-term savings. The report underscores that even though the average saving period is decreasing, it still demands a substantial commitment of time and financial discipline from would-be homeowners.
With the average cost of homes continuing to climb, many individuals are reevaluating their financial strategies and timelines for homeownership. The pressure of prolonged saving periods may lead some to explore alternative options, such as shared ownership or seeking properties in less expensive regions.
As the housing market evolves, potential buyers face the dual challenge of rising costs and the need for a larger down payment. The findings from Realtor.com serve as a reminder of the ongoing complexities within the housing market and the economic realities that influence homeownership aspirations across the United States.
