10 states where it’s fastest to save 10% for a down payment on a home

Without a windfall of cash, saving up for a down payment on a home can take years, and in some U.S. states, decades.

A new analysis from ConsumerAffairs estimates how long it would take to save a 10% down payment in each state by comparing each state’s median household income, median home price, median tax burden and essential living costs.

In Iowa, it takes about 8.7 years to save enough for a 10% down payment, the fastest of any state. In California, this estimate is 25.1 years, longer than any other state. According to the study, the average time required across all 50 states is 14.4 years.

These timelines rely on what the study calls “fractional savings,” which assumes households save 10% of their discretionary income each year.

Dana Edens, media relations manager at ConsumerAffairs, told CNBC Make It that this approach was chosen because “that’s how people actually save money.” “Nobody puts all their extra money aside for a down payment on a house they haven’t even bought yet.”

Edens also said a 10% down payment was chosen, rather than the commonly recommended 20%, as a more realistic goal for first-time buyers.

Here’s a look at the 10 states where it takes the least amount of time to save up a 10% down payment on a home, based on each state’s median income, median home price, and estimated household savings.

A key factor in affordability is housing prices. The median home price in all but one of these states is below the national median of $410,800, according to U.S. Census data.

According to U.S. Census data, 8 out of 10 states have median household incomes that closely match the national median of $83,730. The shortened schedule primarily reflects lower home prices, not abnormally high incomes.

This pattern holds true for many high-income states as well. Regions with median household incomes above six digits, such as California and Hawaii, tend to have longer timelines than states with lower home prices. The higher cost of living, especially housing, in these states can offset the benefit of higher wages.

Annual taxes and necessities also affect how much a household can save with disposable income. Research shows that tax burdens vary by about $15,000 from state to state, with annual costs for essentials ranging from the mid-$20,000s to the low $40,000s.

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