Down Payment Savings Now Exceed a Decade in Six U.S. States

A new analysis by SmartAsset reveals that saving for a 20% down payment on a typical home now takes more than a decade in six U.S. states, with Hawaii leading at 15.6 years. The study compared typical home values and median household incomes in 2016 and 2026, assuming a household saves 10% of its income annually. In Hawaii, the median income is $106,236, and the typical home costs $830,219, up from $533,475 in 2016, a 55% increase, while income rose only 43%. For minimum-wage workers, the timeline stretches to 49.9 years in Hawaii. California follows with 14.7 years, where home prices surged 74% to $776,233, while median income rose 56% to $105,612. Massachusetts requires 12 years, with home prices up 81% to $661,755, and median income at $110,552. Montana's wait is 11.8 years, with home prices doubling to $467,919, while median income rose 59% to $79,456. Washington and Rhode Island are tied at 11.5 years; Washington's home prices increased 96% to $604,087, and Rhode Island's doubled to $504,793. The analysis highlights that wage growth has not kept pace with home price appreciation, making homeownership increasingly unattainable, especially for minimum-wage earners. Factors such as geographic constraints, zoning laws, and migration patterns contribute to the affordability crisis. The report underscores the growing gap between incomes and housing costs, with renting becoming the long-term plan for many.