Many Americans dream of buying a home—especially as rental costs, among other expenses, continue to surge. However, the rising cost of living can also make saving for a home tough. Along with wondering how much is needed to save for a house, potential buyers want to know how long it will take to make this dream a reality.

To find out, our experts analyzed data for the country’s 100 largest metro areas, focusing on metrics like median salary and the upfront cost of buying a home. The results uncover the housing markets where it takes two-earner households the most and least time to save for a house.

In this study, the upfront cost of buying a home includes a 14.2% down payment (the national average), closing costs, the first month’s mortgage and private mortgage insurance (PMI) payments. Data is based on a 15% savings rate.

Key Takeaways

  • Residents in high-cost markets like Los Angeles, Honolulu and San Jose—where there’s a big difference between the median home price and median salary—typically need to save for more than six years before they can afford a home.
  • Metro areas like Toledo and Dayton-Kettering in Ohio and Jackson, Mississippi, offer more affordable housing options, enabling residents to save for a home in less than two years.
  • Three housing markets in Ohio with particularly affordable housing options—the Toledo, Dayton and Cleveland-Elyria metro areas—rank among the five places where it takes the least time to save for a home.

Top 5 U.S. Metros That Take the Longest Time to Save for a Home

1. Los Angeles-Long Beach-Anaheim, California Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 7.08

The Los Angeles-Long Beach-Anaheim Metro Area ranks as the most challenging place to save for a house in the U.S. Two-earner households need to save a total of $134,251 to cover the upfront costs of buying a home.

With the two-earner median salary of $126,407, residents would need to save for seven years (about 84 months) to buy a home.

Based on the median home price of $847,400, the total upfront cost of purchasing a home in this Southern California area includes the following:

  • Down payment: $120,331
  • Closing costs: $7,953
  • First month’s mortgage payment: $4,807
  • First month’s PMI payment: $1,161

2. Honolulu, Hawaii Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 7.01

To afford the average home in the Honolulu Metro Area, a household would need to save a total of $138,193. Based on the median two-earner annual salary of $131,369, it would take about seven years (or 84 months) to do so.

Based on the median home price of $874,500, the total upfront cost of purchasing a home in the Honolulu Metro Area includes the following:

  • Down payment: $124,179
  • Closing costs: $7,463
  • First month’s mortgage payment: $4,961
  • First month’s PMI payment: $1,590

3. San Jose-Sunnyvale-Santa Clara, California Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 6.41

Buyers in this pricey California area would need to save a total of $219,194 to afford the average home. This saving goal would take approximately six years (76 months) based on the median two-income salary of $227,942.

Based on the median home price of $1,422,600, the total upfront cost of purchasing a home in this area includes the following:

  • Down payment: $202,009
  • Closing costs: $7,953
  • First month’s mortgage payment: $8,071
  • First month’s PMI payment: $1,161

4. San Diego-Chula Vista-Carlsbad, California Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 6.40

To afford the average home in the San Diego-Chula Vista-Carlsbad, California Metro Area, a household would need to save a total of $134,134. This equates to saving for a little over six years (76 months) with the median two-earner salary of $139,759.

Based on the median home price of $846,600, the total upfront cost of purchasing a home here includes the following:

  • Down payment: $120,217
  • Closing costs: $7,953
  • First month’s mortgage payment: $4,803
  • First month’s PMI payment: $1,161

5. Oxnard-Thousand Oaks-Ventura, California Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 6.02

Households in the Oxnard-Thousand Oaks-Ventura area need to save $126,707 to afford the average home. With the median two-earner household salary of $140,226, it would take approximately six years (72 months) to save for a house.

Based on the median home price of $796,300, the total upfront cost of purchasing a home in the Oxnard-Thousand Oaks-Ventura Metro Area includes the following:

  • Down payment: $113,075
  • Closing costs: $7,953
  • First month’s mortgage payment: $4,518
  • First month’s PMI payment: $1,161

Top 5 U.S. Metros That Take the Shortest Time to Save for a Home

1. Toledo, Ohio Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 1.76

Toledo, Ohio, ranks as the easiest metro area in the U.S. to save for a home. Households in the Toledo area need to save a total of $28,928 to buy the average home. A two-earner household earning the median salary of $109,645 could save up in less than two years (21 months).

Based on the median home price of $165,200, the total upfront cost of purchasing a home in the Toledo Metro Area includes the following:

  • Down payment: $23,458
  • Closing costs: $4,223
  • First month’s mortgage payment: $937
  • First month’s PMI payment: $310

2. Jackson, Mississippi Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 1.88

In the Jackson Metro Area, prospective homebuyers would need to save a total of $30,981 to purchase a home. Doing so would take the median two-earner household—with a salary of $109,935—almost two years (22 months).

Based on the median home price of $188,700, the total upfront cost of purchasing a home in this metro area includes the following:

  • Down payment: $26,795
  • Closing costs: $2,756
  • First month’s mortgage payment: $1,070
  • First month’s PMI payment: $360

3. Dayton-Kettering, Ohio Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 1.93

Households in the Dayton-Kettering area need to save a total of $33,388 to purchase a home. With the median annual salary of $115,452 among two-earner households, saving for the upfront costs of buying a home would take close to two years (about 23 months).

Based on the median home price of $195,400, the total upfront cost of purchasing a home in the Dayton-Kettering Metro Area includes the following:

  • Down payment: $27,747
  • Closing costs: $4,223
  • First month’s mortgage payment: $1,108
  • First month’s PMI payment: $310

4. Cleveland-Elyria, Ohio Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 1.97

Households in the Cleveland-Elyria Metro Area need to save a total of $35,396 to purchase an average home. The median two-earner household earning $119,932 could save this amount in just under two years (about 23 months).

Based on the median home price of $209,000, the total upfront cost of purchasing a home in this Northeast Ohio metro area includes the following:

  • Down payment: $29,678
  • Closing costs: $4,223
  • First month’s mortgage payment: $1,185
  • First month’s PMI payment: $310

5. Wichita, Kansas Metro Area

Years Needed for the Average Two-Income Household to Save for a Home: 2.03

Prospective homebuyers in the Wichita Metro Area would need to save a total of $31,331 to buy a house. Saving this amount would take a two-earner household about two years, or 24 months, based on the median dual-income salary of $103,026.

Based on the median home price of $191,000, the total upfront cost of purchasing a home in the Wichita Metro Area includes the following:

  • Down payment: $27,122
  • Closing costs: $2,793
  • First month’s mortgage payment: $1,083
  • First month’s PMI payment: $333

How to Boost Your Savings So You Can Purchase a Home Sooner

Regardless of where you live, you can save for a home in less time by increasing your savings rate.

While competing financial priorities can make it hard to increase your savings contributions, you can employ several creative strategies. The following tips for prospective homebuyers may help you buy a home sooner than you thought possible.

  • Find the best place for your savings. Boost your savings by depositing your cash in a more lucrative account. A high-yield savings account offers the same flexibility as a traditional savings account—but with a much higher interest rate. Certificates of deposit (CDs) may offer even higher earnings, though they don’t provide the same liquidity as a savings account.
  • Automate your savings. Set up an automatic, recurring transfer from your checking account to your savings account. This keeps your savings on track without requiring you to think about it. Plus, if you schedule the transfer to occur right after you get paid, you won’t even notice the money leaving your account.
  • Create and stick to a budget. If you want to maximize your savings potential, use a budget. A budget can help you keep your spending and saving aligned with your goals—and highlight areas that could use your attention. Finding and plugging any “money leaks”—like forgotten subscriptions or mindless spending—can free up money for your savings.
  • Save your bonuses, windfalls and cash gifts. An unexpected lump sum of cash—like a bonus, an inheritance or a gift—can dramatically accelerate your savings progress. Instead of spending it all, divert some or all of the cash toward your down payment savings to cut down on your home-buying timeline.
  • Move to a cheaper rental. If you’re renting while saving for a house, spending less on rent is a simple way to hit your savings goal faster. Consider downsizing or moving to a more affordable area while stashing the difference in your savings.

Find The Best High-Yield Savings Accounts Of 2024

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Methodology

To determine the housing markets that take the most and least time to save up for a home, Forbes Advisor analyzed data for the 100 largest U.S. metro areas. The data was based on the following metrics:

  • Median two-earner household income. Data comes from the U.S. Census Bureau’s American Community Survey (ACS).
  • Upfront costs of a home:
    • Estimated down payment. We assumed a down payment would be 14.2% (national average percentage) of the median home value. Data on the national average down payment percentage comes from ATTOM Real Estate data, and median home values come from the U.S. Census Bureau’s ACS.
    • Average closing costs.  Data comes from Rocket Mortgage and the U.S. Census Bureau’s ACS.
    • First-month’s mortgage payment. Data comes from Forbes Advisors mortgage payment calculator.
    • First month’s Private Mortgage Insurance (PMI) payment. Data comes from Forbes Advisor.

We then calculated how long it would take the average two-earner household in each metro area to save up for the upfront costs of a home, assuming they saved 15% of their income each month.