For much of the past decade, a 20% down payment was enough to make homeownership feasible in most U.S. locations—typically requiring around six years of saving. That standard no longer holds: as mortgage rates and home prices have surged, the gap between what buyers can afford and what homes cost has widened dramatically.
While these housing affordability challenges exist nationwide, some areas give potential buyers shorter savings timelines than others. A new analysis from Upgraded Points examines how long it would take the typical household to save for a home in cities and states across the U.S., based on current home prices, mortgage rates, incomes, and other housing-related costs.
Key Takeaways, With Data for New York State
- 41% Down Is the New 20%: In 2025, the typical U.S. household would need a 41% down payment—about $148,000—and nearly 13 years of saving to afford the median-priced home.
- Few Cities Remain Affordable: In just 4 of America’s 54 largest cities could a buyer afford the monthly payments with 20% down or less.
- Borrowing Power for New York State Homebuyers: Earning the state's median income of $89,717, the typical household in New York State can afford to borrow $192,621 of the $484,942 median home price. This leaves a required down payment of about $292K (60.3% of the purchase price).
- New York State Buyers Need 19.4 Years to Save: Assuming buyers spend no more than 30% of their income on housing, invest 10% of their gross income, and earn a 5% annual return, it would take the typical New York State household 19.4 years to save the required down payment—the 7th longest savings timeline in the country.
The full report covers over 600 U.S. cities and all 50 states, with a detailed breakdown of savings timelines, down payment gaps, and housing affordability based on local incomes and costs. Buyers are assumed to earn the median income in their area, spend no more than 30% of it on housing, and purchase a median-priced home. The down payment is calculated as the gap between the median home price and the maximum loan they can afford at today’s rates. To save that amount, they are assumed to invest 10% of their income, earning a 5% annual return.