Elite - Meghan Carroll
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Home > Advice & About > Blog > You Can Save for a Down Payment Faster Than You Think!

You Can Save for a Down Payment Faster Than You Think!

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take to save for a down payment in each state.

Using data from the United States Census Bureau and Zillow, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.

By determining the percentage of income spent renting in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own.

According to the data, residents in Ohio can save for a down payment the quickest in just under 3 years (2.44). Below is a map that was created using the data for each state:

Years Needed to Save 10% Down Payment
Years Needed to Save 10% Down Payment

What if you only needed to save 3%?
What if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3%-down programs? Suddenly, saving for a down payment no longer takes 5 or 10 years, but becomes possible in a year or two in many states as shown on the map below.

Years Needed to Save 3% Down Payment
Years Needed to Save 3% Down Payment – A Map by State

Meghan Carroll

Meghan Carrol
Sales Associate

Contact Info

RE/MAX Elite
27 Beach Road, Suite 4
Monmouth Beach, NJ 07750

Phone Numbers
Cell: 732-508-7402
Office: 732-870-6300
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