Saving for a First Home Now Takes Double the Time Since 2019

According to a study released Thursday by the Center for Responsible Lending's Julian Bond Institute, the time required for median-income renters to accumulate a down payment and closing costs has doubled since 2019, reaching 16 years, and 21 years for median-income Black renters. Middle-income families earning $50,000-$120,000 now need about 12 years, while essential-service workers such as teachers and nurses face a 10-to-13-year savings period.

The analysis uses a 3.5% FHA down-payment benchmark, even though the typical first-time buyer contributes roughly 10%, suggesting the real challenge may be greater. Rising home prices, higher insurance premiums, and stagnant renter incomes have all contributed, while closing costs have climbed. The report also highlights regional variation, from 11 years in Houston to 24 years in Los Angeles, and calls for expanded down-payment assistance and zoning reforms to boost affordable starter-home supply.