The wait varies wildly by metro, and the gap between fastest and slowest markets may surprise brokers and their clients
The wait to save a down payment for a first home now varies more dramatically by metro than at almost any point in recent memory, according to new analysis from Rocket Mortgage and commentary from Redfin agents.
A first-time homebuyer in New York City would need roughly 65 years to save a typical down payment under current market conditions, while a buyer in Warren, Michigan, could do it in just over three.
The disparity, drawn from loan-level data and Census Bureau income figures, underscores how dramatically the path to homeownership diverges by geography even as savings remain the dominant funding source for first-time buyers nationally.
Why down payment size varies so widely by market
The gap comes down to dollars, not just discipline. In Warren and Detroit, first-time buyers typically put down about 5% of the purchase price — $8,797 and $7,600, respectively — reflecting both lower home prices and looser qualifying requirements.
In New York City, the median first-time buyer down payment is $265,000, or 30% of purchase price, a figure driven largely by co-op and condo board requirements that often mandate 20% to 30% down.
San Francisco and Los Angeles followed at 57 and 42 years respectively.
Brokers covering these markets may find context in our recent look at how mortgage brokers are working to dispel the lingering 20% down payment myth among buyers.
Bill Banfield, Rocket's chief business officer, said the variation reinforces the need for early planning.
"Saving for a down payment takes years of discipline, which is why receiving the keys is such a meaningful milestone," Banfield said, adding that down payments as low as 5% to 6% remain common for conventional loans in affordable markets.
Matt Schulz of LendingTree says many Americans are managing higher costs with little room for unexpected setbacks, making affordability conversations more important for mortgage professionals.https://t.co/77opIC04fe
— Mortgage Professional America Magazine (@MPAMagazineUS) June 23, 2026
What this means for brokers serving first-time buyers
Redfin's head of economic research, Chen Zhao, tied the timeline gap directly to local incomes. "Local home prices are driven by local incomes," Zhao said.
"In more affordable markets, buyers can accumulate a down payment much faster because home prices — and therefore down payment requirements — are significantly lower. That's helping keep the dream of homeownership within reach for many."
Detroit-area Redfin agent Anne Loehr, who works in one of the country's most affordable markets, said most of her first-time clients put down just 5%. She also urges buyers to budget beyond the down payment itself.
"I always tell my first-time homebuying clients to consider finding a home that's under budget so they can reserve funds for the additional costs of owning a home, such as regular maintenance and unexpected repairs, which can amount to tens of thousands of dollars," Loehr said.
"Having the right lender on our team is a huge part of that education and guidance first-timers need."
New York City-based Redfin agent Jason Warner described a starkly different calculus in his market.
"The price point is so much higher in New York City than it is in most of the country," Warner said.
"Since it takes a bit longer for first-time home buyers to save here, I'm now often helping mid-career professionals in their late 30s and early 40s to buy their first home after decades of renting."
He added that competition for limited inventory makes a larger down payment a signal of readiness to sellers: "Sellers are looking not only for the highest offer, but for the one that's most likely to close quickly and easily."
Fellow New York City Redfin agent Steve K. Kazoleas said many of his first-time clients lean on family support to bridge the gap, and he encourages buyers to weigh lifestyle alongside affordability.
"I always encourage buyers to leave room in their budget for unexpected repairs, life events and things that might come up," Kazoleas said.
"Homeownership should improve your financial future, not create financial stress in your life. You should be living in your home, not for your home."
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