Aspiring homeowners in New York City would need an estimated 65 years to save for a median down payment, according to a new analysis by Rocket Mortgage. This lengthy timeline starkly contrasts with more affordable cities in the Midwest, where saving for a down payment can take less than four years.
The analysis, which utilized mortgage data from May 2025 to May 2026 and Census Bureau income figures from 2024, assumed households allocate 5% of their annual income towards a down payment fund. In New York City, first-time buyers typically aim for a 30% down payment, averaging $265,000 on a median home price of $883,333.
In contrast, Detroit buyers typically put down approximately 5%, equating to about $7,600, a goal achievable in 3.9 years. Warren, Michigan, presents an even quicker path, with a down payment of $8,797 requiring 3.1 years of saving.
Other major cities also present daunting timelines. San Francisco buyers face a 57-year wait for a $400,000 down payment, while Los Angeles buyers need 41.5 years to save $170,500. Boston, Anaheim, and San Jose also feature on the list of markets where saving for a down payment is a multi-generational endeavor.
Redfin agent Jason Warner noted that the high price points in New York City often lead to first-time buyers being in their late 30s and early 40s. He also cited tight inventory, exacerbated by homeowners holding onto low mortgage rates secured during the pandemic, as a factor pushing buyers toward larger down payments. Sellers, he explained, often prioritize offers with higher down payments due to the signal of financial readiness and commitment.
Furthermore, co-op and condo boards in New York City frequently mandate down payments of 20% to 30%, leaving buyers little alternative. This financial hurdle means that family assistance is increasingly common, with a 2025 Redfin survey indicating nearly 24% of recent young homebuyers relied on relatives for down payment funding.
The fastest markets for saving a down payment are concentrated in the Midwest and South. Virginia Beach, Virginia, and Fort Worth, Texas, both require about 4.3 years to save for their respective median down payments of $20,450 and $17,867. Indianapolis, Milwaukee, Jacksonville, Cleveland, Columbus, and West Palm Beach are also among the top 10 fastest markets, with savings timelines under 5.5 years.
Bill Banfield, Chief Business Officer at Rocket Mortgage, advised first-time buyers to begin financial planning early and explore available options, such as low-down-payment loans or assistance programs. He also suggested directing windfalls like annual bonuses or tax refunds toward down payment funds to accelerate the process.