Aspiring first-time buyers may want to consider settling down in Detroit, Virginia Beach or Warren, Michigan, where a typical household would need just a few years to save the median down payment. This, according to new analysis from Rocket that estimates the time it would take a typical household to save for a down payment on their first home purchase, assuming they save 5% of their annual income.
In Warren, about 30 minutes north of Detroit, it would take about 3.1 years to save for the median $8,797 down payment; about 3.9 years to save $7,600 in Detroit, and 4.3 years to save $20,450 in Virginia Beach, according to the report.
These cities are followed by Fort Worth, Texas and Indianapolis, where the data shows it takes a little more than four years for first-time buyers to save for a down payment.
Rocket’s median household incomes are based on the 2024 American Community Survey by the U.S. Census Bureau. Estimated down payment amounts are based on Rocket Mortgage data on the median down payments made by its first-time homebuyer clients who purchased homes during the year ending on May 19, 2026.
Where buyers can save the fastest:
| Rank | Metro | Estimated Years to Save up for a Down Payment | Median 1st-Time Homebuyer’s Down Payment ($) | Median 1st-Time Homebuyer’s Down Payment as a % of Home Purchase Price | Implied Median Home Price of First-Time Homebuyers | Median Annual Household Income |
| 1 | Warren, MI | 3.1 | $8,797 | 5.0% | $175,940 | $56,281 |
| 2 | Detroit, MI | 3.9 | $7,600 | 5.0% | $152,000 | $39,209 |
| 3 | Virginia Beach, VA | 4.3 | $20,450 | 6.3% | $323,993 | $94,579 |
| 4 | Fort Worth, TX | 4.3 | $17,867 | 5.8% | $306,589 | $82,503 |
| 5 | Indianapolis, IN | 4.4 | $14,600 | 5.6% | $261,273 | $66,900 |
| 6 | Milwaukee, WI | 4.4 | $12,375 | 5.0% | $247,500 | $56,792 |
| 7 | Jacksonville, FL | 4.7 | $17,121 | 6.2% | $277,717 | $72,389 |
| 8 | Cleveland, OH | 5.1 | $11,148 | 5.3% | $209,758 | $43,383 |
| 9 | Columbus, OH | 5.1 | $17,001 | 6.5% | $262,121 | $67,084 |
| 10 | West Palm Beach, FL | 5.3 | $19,569 | 5.7% | $344,521 | $74,478 |
At the other end of the spectrum, it can take several decades for aspiring first-time homebuyers in expensive coastal markets to save for a down payment, according to the report. In New York City, where it takes the longest, it would take a typical household 65 years to save up $265,000, the median first-time homebuyer’s down payment. That’s followed by San Francisco at 57 years, and Los Angeles at 42 years.
Where it takes first-time buyers the longest to save up:
| Rank | Metro | Estimated Years to Save up for a Down Payment | Median 1st-Time Homebuyer’s Down Payment ($) | Median 1st-Time Homebuyer’s Down Payment as a % of Home Purchase Price | Implied Median Home Price of First-Time Homebuyers | Median Annual Household Income |
| 1 | New York City, NY | 65.2 | $265,000 | 30% | $883,333 | $81,228 |
| 2 | San Francisco, CA | 57.2 | $400,000 | 27% | $1,501,466 | $139,801 |
| 3 | Los Angeles, CA | 41.5 | $170,500 | 20% | $852,500 | $82,263 |
| 4 | Boston, MA | 37.8 | $185,000 | 23% | $819,573 | $97,791 |
| 5 | Anaheim, CA | 33.6 | $170,000 | 20% | $850,000 | $101,145 |
| 6 | San Jose, CA | 33.6 | $249,000 | 22% | $1,113,595 | $148,226 |
| 7 | San Diego, CA | 25.8 | $143,500 | 20% | $717,500 | $111,032 |
| 8 | Oakland, CA | 25.4 | $130,000 | 20% | $650,000 | $102,235 |
| 9 | Washington D.C. | 23.6 | $129,500 | 20% | $647,500 | $109,707 |
| 10 | Austin, TX | 21.2 | $95,700 | 20% | $478,500 | $90,430 |
“Saving for a down payment takes years of discipline, which is why receiving the keys is such a meaningful milestone,” said Bill Banfield, Rocket’s chief business officer. “For anyone hoping to own a home someday, it’s never too early to understand what buyers are putting down in your market and start building a plan. Many first-time buyers are surprised to learn they may qualify for programs that make homeownership more affordable and, in many markets, the idea that you need 20% down is simply a myth. Our analysis found that down payments as low as 5% to 6% are common for conventional loans in some affordable markets.”
Across markets, down-payment percentages and home prices are strongly correlated. One reason, Rocket’s report says, is that larger down payments are often necessary to qualify for mortgages on high-priced homes. By putting more money down and reducing the loan amount, buyers can lower their monthly payment enough to meet a lender’s debt-to-income requirements.
“The time it takes to save up a down payment varies enormously by market,” Chen Zhao, Redfin head of Economic Research, said. “Local home prices are driven by local incomes. 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.”
First-time buyers may also qualify for conventional loans with down payments as low as 3% or government-backed loans that require even less upfront cash, Rocket writes. While putting more money down can reduce monthly payments and borrowing costs, lower down payment options can significantly shorten the time needed to save and help buyers begin building equity sooner.
“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,” says Anne Loer, a Redfin Premier agent in the Detroit area, who notes most of her first-time buyers put 5% down. “Having the right lender on our team is a huge part of that education and guidance first-timers need. The lender can often even source help with funding the home purchase, such as down payment assistance programs and first-time homebuyer grants.”
The report also looks into the nation’s most expensive markets, noting buyers tend to have higher incomes and greater wealth, allowing them to contribute more money upfront.
“The price point is so much higher in New York City than it is in most of the country,” says Jason Warner, a Redfin agent based in New York City, where Rocket writes a 30% down payment is the norm and why it takes so long for first-time buyers to save up. “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.”
“New York City is competitive by its nature, and inventory is squeezed right now because a lot of homeowners are locked in by low mortgage rates they got during the pandemic,” Warner added. “Sellers are looking not only for the highest offer, but for the one that’s most likely to close quickly and easily. A high down payment signals to the seller that you have the funds needed to close and you’re committed to the home. While a high down payment might not be as strong as an all-cash offer, it is a sign that a lender is likely going to be able to come through with funding your loan on time because you have cash handy and finances in order.”
New York City’s 65-year figure stands out even among expensive housing markets. Warner explains that likely has to do with the fact that in New York City, many co-op and condo buildings require down payments of 20% to 30%.
To read the full report, click here.
