Overview
- A Rocket Mortgage analysis published in late June and early July finds the time a median earner needs to save a starter-home down payment varies wildly by metro, from roughly three to five years in parts of the Midwest to multiple decades in high-priced coastal cities.
- The Rocket estimate uses down payments from Rocket’s first-time buyer clients, Census income data and an assumption that households save 5% of their annual income, so the timelines reflect those specific inputs rather than every buyer’s situation.
- National data show typical down payments have fallen to about $23,400 in early 2026, and the share of low-down-payment government loans has risen, meaning many buyers now rely more on FHA/VA loans, family gifts or program aid to meet cash needs.
- Industry outlets say agents and lenders should start buyer interviews with funding clarity—how much cash the buyer has, the source of funds and any gift or assistance paperwork—because local cash-to-close rules and documentation affect offer strength and timing.
- Broader market effects include a shrinking share of first-time buyers, higher median first-time down payments when they do put cash down, and wide availability of assistance: researchers catalog more than 2,600 programs and find many buyers qualify for help.