Analysis Says Starter-Home Savings Time Has Doubled Since 2019
A new analysis from the Center for Responsible Lending indicates that saving for a starter home's down payment and closing costs has doubled since 2019, now taking an average of 16 years for median-income renter households due to increased home…
Louisville, KY, October 25, 2026 —
A new analysis from the Center for Responsible Lending says median-income renter households now need an average of 16 years to save for a starter home’s down payment and closing costs. That period has doubled since 2019, according to the analysis.
The organization attributes the longer savings timeline to increased home prices, inflation and stagnant incomes. The summary of the analysis does not provide specific figures for those factors or explain how much each contributed to the change.
The 16-year estimate concerns saving for upfront purchase costs, rather than the time it takes to complete a home purchase. It is an average for the household group described in the analysis; the summary does not say how individual households’ timelines vary.
The information provided does not specify the geographic area covered, the analysis’s publication date, or the assumptions used to calculate the estimate. It also does not give a dollar amount for the down payment and closing costs or detail how the 2019 comparison was made.
The findings point to a widening gap between the time renters may need to accumulate upfront costs and the cost of entering the starter-home market. The analysis identifies higher home prices, inflation and stagnant incomes as contributing factors, but the available summary does not include further data or recommendations from the Center for Responsible Lending.
Story summarized from the original created by Jennifer Ludden on www.lpm.org, see more information here.
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