It Takes More Than 7 Years To Save Up A Down Payment

MoneyTips

First-time homebuyers face many obstacles, but perhaps the most frustrating one is accumulating down payment money.

Traditional loans require a 20% down payment. Using Zillow's $229,800 median home sale price for November 2018, that's over $45,000 – and in many urban markets, a 20% down payment will easily top $100,000.

How long will it take you to save up a 20% down payment given today's median homebuyer income of $72,500? According to Zillow Research, you'll need 7.2 years on average with today's median home prices. That's 1.5 more years than it took in 1988, when the median home value was $79,400 and the median homebuyer income was $28,100.

Since 1988, the median home value has increased by a factor of 2.8 while median homebuyer income increased by a factor just below 2.6. However, overall debt obligations have exploded. America's household...

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