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Rocket Mortgage Analysis Shows Huge Gap in Time to Save a First-Home Down Payment

The study shows local home prices, lender and co-op rules, plus weak new-home sales, are lengthening how long it takes typical households to buy.

Image
Aerial view of Residential district with Woodward avenue in Detroit Michigan
An image collage containing 3 images, Image 1 shows A long row of classic Brooklyn brownstones with ornate stoop balustrades and green trees lining the street in Clinton Hills, Image 2 shows The steep figure stems from local buying norms, with first-timers in the city typically putting down 30% of a home’s purchase price compared to roughly 5% in more affordable markets, Image 3 shows San Francisco trails close behind at 57.2 years.

Overview

  • Rocket Mortgage published the analysis on Tuesday that estimates a typical household would need about 65 years to save a median first-time buyer down payment in New York City but only about 3 to 4 years in some Midwestern metros such as Warren and Detroit.
  • The calculations assume households save 5% of median annual income, use 2024 American Community Survey incomes, and rely on Rocket Mortgage’s first-time buyer down-payment data through May 19, 2026.
  • Down-payment shares vary widely by market, with Rocket finding median first-time buyer down payments near 5% in places like Warren and Detroit and roughly 20–30% in high-cost markets where condo and co-op underwriting often demands larger upfront cash.
  • The report was released as broader market signals show buyer challenges, with HUD reporting a 7.3% drop in new single-family sales in May and inflation rising, both of which can make it harder for savers to convert savings into a purchase.
  • Long saving timelines are likely to push many would-be buyers to rent longer, reduce turnover by keeping owners locked into low pandemic-era mortgage rates, and sustain tight inventory that can keep prices high and widen regional affordability gaps.