The American dream of homeownership is still within reach, however the length of that reach depends entirely on your ZIP code.
According to a new Rocket Mortgage analysis, a typical New York City household would need more than 65 years to save for the median first-time buyer down payment. Meanwhile, in Warren, Michigan, saving for the median first-time buyer down payment takes just over three years.
The analysis estimates how long it would take typical households to save for a first-time buyer down payment, assuming they set aside 5% of their annual income each year. The down payment figures are based on first-time buyer loans from Rocket Mortgage closed from May 20, 2025, to May 19, 2026, and 2024 American Community Survey income data.
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The 10 U.S. Metro Areas Where Saving for a Down Payment Takes the Longest
To understand the massive scale of this geographic divide, look at how the estimated savings timelines and median down payments stack up across the country’s major housing markets. In these areas, sky-high home prices combined with larger down-payment percentages push ownership decades out of reach for the typical local earner:
| Years to Save | Median Down Payment | Implied Home Price | Median Annual Income | |
| 1. New York City | 65.2 | $265,000 (30% down) | $883,333 | $81,228 |
| 2. San Francisco | 57.2 | $400,000 (27%) | $1,501,466 | $139,801 |
| 3. Los Angeles | 41.5 | $170,500 (20%) | $852,500 | $82,263 |
| 4. Boston | 37.8 | $185,000 (23%) | $819,573 | $97,791 |
| 5. Anaheim, Calif. | 33.6 | $170,000 (20%) | $850,000 | $101,145 |
| 6. San Jose, Calif. | 33.6 | $249,000 (22%) | $1,113,595 | $148,226 |
| 7. San Diego | 25.8 | $143,500 (20%) | $717,500 | $111,032 |
| 8. Oakland, Calif. | 25.4 | $130,000 (20%) | $650,000 | $102,235 |
| 9. Washington, D.C. | 23.6 | $129,500 (20%) | $647,500 | $109,707 |
| 10. Austin, Texas | 21.2 | $95,700 (20%) | $478,500 | $90,430 |
[See: Best Low- and No-Down-Payment Mortgages]
The Fast Track: 10 Metros Where Buyers Can Save the Fastest
Some metro areas offer a much shorter path to homeownership. First-time buyers in these 10 markets can save for a down payment in less than five and a half years:
| Years to Save | Median Down Payment | Implied Home Price | Median Annual Household Income | |
| 1. Warren, Mich. | 3.1 | $8,797 (5% down) | $175,940 | $56,281 |
| 2. Detroit, Mich. | 3.9 | $7,600 (5%) | $152,000 | $39,209 |
| 3. Virginia Beach, Va. | 4.3 | $20,450 (6.3%) | $323,993 | $94,579 |
| 4. Fort Worth, Texas | 4.3 | $17,867 (5.8%) | $306,589 | $82,503 |
| 5. Indianapolis | 4.4 | $14,600 (5.6%) | $261,273 | $66,900 |
| 6. Milwaukee | 4.4 | $12,375 (5%) | $247,500 | $56,792 |
| 7. Jacksonville, Fla. | 4.7 | $17,121 (6.2%) | $277,717 | $72,389 |
| 8. Cleveland | 5.1 | $11,148 (5.3%) | $209,758 | $43,383 |
| 9. Columbus, Ohio | 5.1 | $17,001 (6.5%) | $262,121 | $67,084 |
| 10. West Palm Beach, Fla. | 5.3 | $19,569 (5.7%) | $344,521 | $74,478 |
Why Down Payment Expectations Vary Widely
These massive gaps between metro areas reflect the variation in home prices across the U.S. and how much buyers actually put down. First-time homebuyers don’t always have to put down a standard 20%, and some metros have a median first-time buyer down payment as low as 5%. In Warren and Detroit, for example, median first-time buyer down payments were about 5% of the purchase price — or $8,797 in Warren and $7,600 in Detroit.
In high-cost markets, first-time buyers often put down a larger percentage of the purchase price. First-time buyers in New York typically make down payments of around 30% of the purchase price, or $265,000, according to Rocket Mortgage data. In San Francisco, the median first-time buyer down payment was $400,000, or about 27% of the purchase price.
The Estimates Reflect a Savings Scenario
It’s important to note that these savings timelines reflect median down payments made by Rocket Mortgage’s first-time buyer clients, not the absolute minimum requirements to get a mortgage. The calculation assumes a household saves 5% of annual income each year, but doesn’t account for bonuses, investment returns, family help or down payment assistance that often gives homebuyers the financial boost needed to make those down payments.
For homebuyers looking to avoid these lengthy saving delays, there are other options. Some first-time buyers can qualify for conventional loans with down payments as low as 3% or government-backed loans with low down payments. However, homebuyers should keep in mind that smaller down payments can increase monthly borrowing costs.
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From 3 Years to 65 Years: New Data Reveals the Radical Down Payment Divide Between U.S. Cities originally appeared on usnews.com
