• The typical U.S. household now requires seven years to save for a home down payment in 2025, down from a peak of 12 years in 2022, according to a Realtor.com report.
  • Rising home prices have pushed typical down payments from $13,900 in the third quarter of 2019 to $30,400 in the third quarter of 2025, while personal savings rates average 5.1%, below pre-pandemic levels.
  • Despite improving market conditions, affordability barriers persist, with inflation constraining household savings and competition keeping pressure on buyers.

Realtor.com's latest analysis reveals a notable shift in the U.S. housing landscape, as the time to save for a down payment has decreased to seven years in 2025 from a high of 12 years in 2022. This improvement comes amid a backdrop of escalating home prices and heightened competition, which have driven typical down payments up significantly over the past few years. According to people familiar with the matter, the report underscores ongoing challenges for first-time buyers, even as market dynamics show signs of easing.

In recent quarters, the personal savings rate has averaged 5.1% of income, a figure that remains below the pre-pandemic norm of 6.5%. This squeeze on savings, coupled with inflation eroding purchasing power, has made it harder for households to accumulate the funds needed for homeownership. Efforts to boost affordability have hit a snag, with many potential buyers still facing steep financial hurdles. A spokesperson for Realtor.com, when reached for comment, emphasized that while progress is being made, the path to homeownership remains arduous for many Americans.

Market data from the third quarter of 2025 shows that typical down payments have more than doubled since 2019, reflecting broader trends in the real estate sector. Industry insiders note that investor activity has held steady from 2024 into mid-2025, adding to the competitive pressure on individual buyers. Without significant increases in savings or wage growth, experts warn that the housing market's recovery could stall, potentially forcing some buyers to delay purchases indefinitely.

Realtor.com, operated by News Corp (NWSA) subsidiary Move, Inc., has been leveraging AI and data innovations to enhance its offerings, treating information as a core product to compete with larger tech firms. The company, which relocated its headquarters to Austin, Texas in February 2025, continues to focus on growth through partnerships and technological advancements. Its report highlights a shift toward more efficient and sustainable home designs in 2025, aligning with broader industry trends aimed at appealing to modern buyers.

Looking ahead, the short-term outlook suggests continued affordability challenges may suppress demand, though innovations in real estate technology could improve access over time. The long-term consequences hinge on factors like economic stability and regulatory developments, with Realtor.com aiming to reclaim its position as the top U.S. real estate site through strategic initiatives. As the market evolves, stakeholders from first-time buyers to real estate professionals will need to navigate these complex dynamics, with the seven-year save time serving as a key benchmark for future assessments.

This article was updated to clarify that the savings rate data reflects averages through 2025, based on the latest available figures.