How Long it Takes to Save for a Down Payment

Hanley Wood Data Studio  |   December 11, 2015

Which age groups are financially fit to buy homes the fastest? Hanley Wood’s Data Studio recently used Metrostudy and Census data to find out how long it would take each generation to save up a 10 percent down payment on a home based on the median household income and median home price for each age group. Read more: Millennials Are Saving for Home Ownership Millennials and retirees tend to save for the longest amount of time in order to put a 10 percent down on a home, according to the study. More specifically, younger millennials aged 18 to 24 – who are usually recent college graduates – will have to save the longest at an average of 8.77 years in order to save enough for a 10 percent down payment on a home costing $221,600. Retirees aged 65 and over will take, on average, about 7.37 years to save up for a down payment on a $291,000 home. Americans aged 45 to 54 years old – who tend to be at their top earnings power -- take the least amount of time to save up for a down payment. Still, it takes more than three-and-a-half years to save for that age group. Here’s a breakdown of the years to save up for a down payment based on age: 18-24: 8.77 years (average monthly mortgage payment: $597) 25-34: 7.34 years (average monthly mortgage payment: $950) 35-44: 5.45 years (average monthly mortgage payment: $1,073) 45-54: 3.54 years (average monthly mortgage payment: $891) 55-64: 3.72 years (average monthly mortgage payment: $766) 65 and over: 7.37 years (average monthly mortgage payment: $532)

Source: BuilderOnline.com