Austin First-Time Buyers Face 20-Year Down Payment Wait, Data Finds

Austin has become one of the most difficult places in the country for first-time homebuyers trying to save for a down payment, according to a new study from Rocket Mortgage.

The Texas capital ranked No. 10 nationally among U.S. cities where it takes the longest to accumulate enough savings for a first home purchase. The study estimated that a household saving 5% of its annual income would need just over 20 years to save for a typical down payment in Austin.

Researchers found that the median down payment for first-time homebuyers in Austin is approximately $95,700, while the city's median household income is $90,430, according to U.S. Census Bureau data cited in the report.

The median purchase price for a first-time homebuyer in Austin was estimated at $478,500, highlighting the affordability challenges facing residents hoping to enter the housing market.

Austin was the only Texas city to appear in the national top 10 ranking.

Higher-priced coastal markets dominated the list, led by New York City, where first-time buyers would need roughly 65 years to save for a typical down payment while earning the city's median income. San Francisco and Los Angeles also ranked near the top of the study due to their high housing costs and larger upfront cash requirements.

Other major Texas cities offered significantly shorter timelines for prospective buyers.

In Houston, first-time buyers would need about six years to save for the median down payment of $20,512. Dallas buyers would need roughly eight years to accumulate the median down payment of $31,225.

Fort Worth ranked among the nation's most accessible housing markets for first-time buyers, placing fourth among cities where buyers can save for a down payment the fastest. The study found that Fort Worth households could typically save for the median down payment of $17,867 in about four years.

Housing experts say one reason saving takes longer in expensive markets is that buyers often make larger down payments to remain competitive and lower monthly mortgage costs.

Nationally, first-time buyers typically put down about 10% when purchasing a home, although many loan programs allow for significantly smaller down payments.

The findings underscore the growing affordability challenges facing younger buyers in Austin, where home prices have consistently outpaced income growth over the past decade.