Brief
NYC tops U.S. markets as first‑time buyers need 65 years to save for a home
Rocket’s study shows a median New York household would need over six decades of saving to cover a $265,000 down payment.
By Felo News Desk · Published
According to a new analysis by real‑estate data firm Rocket, New York City is the hardest major U.S. market for first‑time home buyers to save for a down payment. The study, which combined 2024 Census income data with mortgage‑customer down‑payment figures from May 2025 to May 2026, estimates a typical NYC household would need 65.2 years of saving at a 5 % annual rate to amass the median $265,000 down payment.
What happened
The Rocket analysis calculated the time required to save for a down payment in 12 U.S. cities. In New York, the median first‑time buyer pays 30 % of the $883,333 purchase price as a down payment. With a median household income of $81,228, a 5 % savings rate yields just over $4,000 saved per year, leading to the 65.2‑year figure. By comparison, San Francisco households would need 57.2 years to save a $400,000 down payment (27 % of a $1.5 million home), Los Angeles 41.5 years for a $170,500 down payment, Boston 37.8 years for $185,000, and both Anaheim and San Jose 33.6 years.
What the reports add
The analysis highlights the stark contrast between New York and cheaper markets such as Warren, Michigan, where a median first‑time buyer puts down $8,797—only 5 % of a $175,940 purchase price—and could theoretically save that amount in 3.1 years. Detroit follows as the second‑fastest city at 3.9 years. Rocket’s methodology assumes a constant 5 % savings rate and does not account for potential income growth or changes in housing prices.
What was said
The New York Post article notes that the 65‑year figure “illustrates just how far the typical household’s income is from the amount first‑time buyers are putting down in the city.” No direct quotes from Rocket or other officials are provided in the source.
How it came about
Rocket’s study builds on earlier reports of rising housing costs and stagnant wages in major metros. Felo News previously covered affordability challenges for first‑time buyers in the UK, including the “Your First Home” scheme aimed at lowering deposit requirements. While the U.S. analysis focuses on savings time, both contexts underscore the growing gap between incomes and required down payments.
Key facts
- A typical New York City household would need 65.2 years to save a $265,000 down payment at a 5% savings rate. (nypost.com)
- The median first‑time buyer in NYC puts down 30% of a $883,333 purchase price. (nypost.com)
- San Francisco requires 57.2 years to save a $400,000 down payment, the second‑longest among the cities studied. (nypost.com)
- In Warren, Michigan, a median first‑time buyer could save the required $8,797 down payment in 3.1 years. (nypost.com)
Sources
- [1] nypost.com — originally reported as “Exclusive | NYC now ranks as the hardest place to buy a home for first-time buyers”
