Dec 11 2015 17170 2

Dated: 12/13/2015

Views: 114

How Long it Takes to Save for a Down Payment


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)

View the full results.

Source: “How Long Does Each Generation Have to Save for a Down Payment?” Hanley Wood Data Studio/BUILDER (Dec. 10, 2015)

Blog author image

Russ Chiodo

Russell Chiodo, GRI, CNE, CDPE Orlando, FL eXp Realty LLC, A-SAB 888-883-8509 x 145 Cell: 407-247-7531 Fax: 407-568-3493 [email protected] Bio: Russ is a Unit....

Latest Blog Posts

The Cost of Waiting!

The Cost of Waiting: Interest Rates Edition [INFOGRAPHIC] Friday August 17th, 2018THE NADEAU TEAM EXP REALTY407 247 1139www.searchflorida

Read More

For Sale: 8849 Villa View Circle

8849 Villa View Circle, Orlando FL 328212 Bed/2 Bath | $135,000Beautiful, spacious 2-bedroom 2 bath condo, in immaculate condition. Located on the second floor with private balcony. All appliances

Read More

11 Reasons Why Being a Real Estate Agent is Exactly Like Parenting!

While real estate agents are busy helping buyers and sellers navigate the often-rocky terrain of the real estate world, we put dozens of important skills to the test. Possessing an uncanny ability

Read More