Americans in These States Could Spend Up to 5 Years Saving for a Home Down Payment, Study Finds

Revealed: The states where saving for a home down payment takes the longest

Submitted by Cinch Home Services

• Hawaii has the longest estimated saving time for a 15% down payment, at around five years, 84.2% longer than the national estimate.


• California is second, with an estimated saving time of four years and ten months.


• Montana is third, at around four years, while Iowa has the shortest saving time at one year and nine months.

A new study has revealed that Hawaii is the state where saving for a down payment on a home would take the longest.

Home warranty specialists Cinch Home Services analyzed home values, household incomes, rent and living costs to find which states would take the longest to save a 15% down payment on a typical home.

The study calculated how long a household earning its state’s median income would need to save, assuming it put aside half of the money remaining after rent, groceries, health care and transportation. The other half was assumed to cover taxes and other expenses.

Across the US, the estimated saving time was 2.72 years, or around two years and nine months, based on monthly savings of approximately $1,692. These are modeled saving times using the median income for all households, with the calculation assuming households can save consistently each month.

Top 10 states where saving for a home down payment takes the longest

Hawaii has the longest estimated saving time for a home down payment, at 5.01 years. This is 84.2% longer than the national estimate of 2.72 years. Overall, the typical home value in Hawaii is $833,340, meaning a 15% down payment would be $125,001, the highest amount of any state. The estimated saving time assumes households put aside around $2,080 each month.

California has the second-longest estimated saving time, at 4.83 years, or around four years and ten months. This is 77.6% longer than the national estimate. The Golden State has a typical home value of $764,158, bringing a 15% down payment to $114,624. With a median household income of $100,149, the calculation assumes households save around $1,977 a month.

Montana has the third-longest estimated saving time for a down payment, at 3.96 years, or approximately four years, which is 45.6% longer than the national estimate. A typical home in the state is valued at $471,746, with a 15% down payment of $70,762. Montana’s median household income is $75,340, and the assumed monthly savings come to around $1,489.

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With an estimated saving time of 3.67 years, or around three years and eight months, New York has the fourth-longest wait to save a down payment. This is 34.9% longer than the national estimate of 2.72 years. Overall, a typical home in the Empire State is valued at $526,714, meaning households would need to save $79,007 for a 15% down payment, putting aside around $1,796 a month.

Florida has the fifth-longest estimated saving time, at 3.50 years, 28.7% longer than the national estimate. The Sunshine State has a typical home value of $375,470, bringing the down payment to $56,320. Its assumed monthly savings of around $1,341 are the lowest among the states in the top ten ranked positions, with median household income at $77,735.

Nevada has the sixth-longest estimated saving time for a down payment, at 3.47 years, 27.6% longer than the national estimate. A typical home in the state is valued at $442,027, meaning a 15% down payment would be $66,304. With households saving around $1,595 each month under the study’s assumptions, it would take approximately three years and six months to reach this amount.

With an estimated saving time of 3.46 years, Rhode Island has the seventh-longest wait to save a down payment, 27.2% longer than the national estimate. The state’s typical home value is $511,233, with a down payment of $76,685.

Massachusetts has the eighth-longest estimated saving time, at 3.45 years, 26.8% longer than the national estimate of 2.72 years. The state has the highest median household income among the 50 states, at $104,828, but its typical home value is also relatively high at $661,896. Overall, a 15% down payment would come to $99,284, with assumed monthly savings of around $2,395.

Idaho and Oregon share ninth place, with an estimated saving time of 3.39 years, or around three years and five months. This is 24.6% longer than the national estimate. In Idaho, a typical home costs $478,744, bringing a 15% down payment to $71,812. The calculation assumes households save around $1,767 a month from a median annual household income of $81,166.

In the Beaver State, a typical home is valued at $496,113, meaning households would need $74,417 for a 15% down payment. Its assumed monthly savings are around $1,831, slightly higher than Idaho’s, although the amount needed for the down payment is higher too.

Rounding out the top ten ranked positions is Washington, with an estimated saving time of 3.32 years, or around three years and four months, 22.1% longer than the national estimate. The state’s typical home value is $591,879, with a 15% down payment of $88,782. With a median household income of $99,389, households are assumed to save around $2,231 each month.

Top 10 states where saving for a home down payment takes the least time

Iowa has the shortest estimated saving time for a home down payment, at 1.74 years, or around one year and nine months. This is 36.0% shorter than the national estimate of 2.72 years. Overall, the typical home value in Iowa is $239,547, meaning a 15% down payment would be $35,932. With assumed monthly savings of around $1,718, households would reach the target more than three years sooner than in Hawaii.

Kansas has the second-shortest estimated saving time, at 1.84 years, or around one year and ten months, 32.4% shorter than the national estimate. The state has a typical home value of $249,603, bringing the down payment to $37,440. Its median household income of $75,514 is almost the same as Iowa’s, while assumed monthly savings are slightly lower at around $1,696.

West Virginia has the third-shortest estimated saving time, at 1.86 years, 31.6% shorter than the national estimate. The state also has the lowest typical home value of any state, at $179,496, meaning a 15% down payment would be $26,924. This keeps the estimated saving time relatively short, despite assumed monthly savings of around $1,207, the lowest amount in this group.

With an estimated saving time of 1.92 years, or around one year and eleven months, Ohio has the fourth-shortest wait to save a down payment. This is 29.4% shorter than the national estimate of 2.72 years. A typical home in the Buckeye State is valued at $248,803, bringing the down payment to $37,320, with households assumed to save around $1,619 each month.

North Dakota has the fifth-shortest estimated saving time, at 1.94 years, 28.7% shorter than the national estimate. Its typical home value is $292,293, meaning households would need to save $43,844 for a 15% down payment. With a median household income of $77,871 and assumed monthly savings of around $1,881, this would take approximately one year and eleven months.

Illinois has the sixth-shortest estimated saving time for a down payment, at 2.01 years, 26.1% shorter than the national estimate. A typical home in the state is valued at $297,573, with a 15% down payment of $44,636. The study assumes households can save around $1,853 a month from a median annual household income of $83,211.

With an estimated saving time of 2.08 years, Oklahoma has the seventh-shortest wait to save a down payment, 23.5% shorter than the national estimate. The state has a typical home value of $223,261, bringing the down payment to $33,489. Overall, the calculation assumes monthly savings of around $1,345, meaning it would take approximately two years and one month to reach the target.

Michigan has the eighth-shortest estimated saving time, at 2.10 years, 22.8% shorter than the national estimate of 2.72 years. A typical home in the Great Lakes State is valued at $266,292, meaning a 15% down payment would be $39,944. With a median household income of $72,389, assumed monthly savings come to around $1,582.

Maryland has the ninth-shortest estimated saving time, at 2.12 years, 22.1% shorter than the national estimate. Its typical home value of $428,308 is the highest among the states in this shorter-saving-time group, bringing the down payment to $64,246. However, the state also has a median household income of $102,905, allowing for assumed monthly savings of around $2,528, the highest of any state.

Minnesota and Pennsylvania share tenth place for the shortest estimated saving time, at 2.13 years, or around two years and two months. This is 21.7% shorter than the national estimate. In Minnesota, the value of a typical home is $350,752, meaning households would need $52,613 for a 15% down payment, with assumed monthly savings of around $2,058.

In the Keystone State, a typical home is valued at $290,401, bringing the down payment to $43,560. Its assumed monthly savings of around $1,704 are lower than Minnesota’s, but the smaller down payment leaves both states with the same rounded saving time.

Speaking on the findings, a spokesperson for Cinch Home Services said: “Massachusetts is a good example of why a high income doesn’t necessarily mean buying a home will happen quickly. It has the highest median household income in the study, but saving a 15% down payment would still take almost three and a half years. That’s a long wait even for a household earning more than $100,000 a year.

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“Maryland offers a surprising comparison. A typical home there costs more than in Florida, yet the estimated saving time is almost 17 months shorter. Its higher household income leaves more room to save after the living costs included in the study. Looking at home prices alone would miss that.

“There are some striking differences between neighbors, too. Saving a down payment in Montana would take roughly twice as long as in North Dakota, even though their median household incomes are less than $3,000 apart. For people earning similar amounts, where they’re buying can make years of difference.

“Of course, putting away the same amount every month for several years is difficult. A car repair or a gap between jobs can mean dipping into money that was meant for the house. And after spending so long saving, buyers will understandably want to get the keys as soon as they can. But it’s worth leaving room for the costs that come afterward, especially if the home needs repairs or an older appliance needs replacing.”

https://www.cinchhomeservices.com/home-warranty/state