Recent Homebuyers Saved for Five Years on Average

Recent homebuyers reported saving for an average of five years for their down payment, and current prospective buyers have been saving for 4.63 years, according to a survey by Apartment Therapy.  

The survey included 676 recent homebuyers and prospective homebuyers (those who were actively shopping at the time of their responses).  

Many would consider five years to be a decent amount of time. With their dedicated savings: 

• 68% of recent buyers had a budget of less than $500,000
• Of which 71% could afford a single-family home
• 34% had a budget of less than $300,000
• Of which 69% could afford a single-family home

Those who did not buy single-family homes opted for condos or apartments instead.  

On average, recent buyers who were surveyed put down an average of 17.38% on their new home. However, 49% put down 10% or less of the purchase price. Even further, 28% only put down 5% or less.  

To save for their down payments and closing costs, 83% of all recent and prospective buyers said they used or are using a savings account, and 31% opened a new high-yield savings account specifically for the purpose of homebuying.  

With the money they saved, survey respondents thought carefully about both their wants and dealbreakers for their new homes. When looking at potential homes, they said they most paid attention to:

1. The home’s layout (80%)
2. Natural light (68%)
3. The size of rooms (67%)

Their must-have features were:

1. A washer/dryer or a laundry hookup (77% of prospective buyers)
2. A garage and/or parking space (59% of recent buyers)

Recent buyers’ top dealbreakers included: 

1. Needing a lot of updates
2. Being located on a busy street
3. Lacking natural light
4. Lacking a garage/parking or laundry

Notably, 100% said they didn’t concede on any of these disqualifiers. 

Overall, the survey found that recent homebuyers 

• Looked at an average of 10 properties
• Made an average of two offers before one was accepted
• Took an average of 7.5 months to find their home