Saving for a down payment is often the number one hurdle to many would-be home buyers. And consumers looking to buy may have to wait many years, depending on their profession, to save $55,000 for a down payment to buy a median priced home in the country, according to a new realtor.com® analysis.
Realtor.com®’s research team studied how long it takes buyers in 12 professions to save up for a down payment. For the study, researchers assumed that buyers would spend $275,000, which is the median price of a home in the U.S., according to realtor.com® data. Also, the study assumed buyers would save the 20 percent down payment, which would be about $55,000 on a $275,000 home. (Note: Buyers still have many options
to put down less on a home purchase.)
Realtor.com® researchers found that the following professions will likely have the easiest to hardest time saving for a down payment:
1. Surgeon: $252,919 average salary
- Time to reach goal when saving 10% annually: 2.2 years
- Time to reach goal when saving 20% annually: 1.1 years
2. Chief executive: $194,350 average salary
- Time to reach goal when saving 10% annually: 2.8 years
- Time to reach goal when saving 20% annually: 1.4 years
3. Lawyer: $139,880 average salary
- Time to reach goal when saving 10% annually: 3.9 years
- Time to reach goal when saving 20% annually: 2 years
4. App developer: $104,300 average salary
- Time to reach goal when saving 10% annually: 5.3 years
- Time to reach goal when saving 20% annually: 2.6 years
5. Registered nurse: $72,180 average salary
- Time to reach goal when saving 10% annually: 7.6 years
- Time to reach goal when saving 20% annually: 3.8 years
6. Police officer: $62,790 average salary
- Time to reach goal when saving 10% annually: 8.8 years
- Time to reach goal when saving 20% annually: 4.4 years
7. Elementary school teacher: $59,020 average salary
- Time to reach goal when saving 10% annually: 9.3 years
- Time to reach goal when saving 20% annually: 4.7 years
8. Plumber: $56,030 average salary
- Time to reach goal when saving 10% annually: 9.8 years
- Time to reach goal when saving 20% annually: 4.9 years
9. Postal carrier: $50,610 average salary
- Time to reach goal when saving 10% annually: 10.9 years
- Time to reach goal when saving 20% annually: 5.4 years
10. Customer service representative: $35,170 average salary
- Time to reach goal when saving 10% annually: 15.6 years
- Time to reach goal when saving 20% annually: 7.8 years
11. Hairdresser/cosmetologist: $25,590 average salary
- Time to reach goal when saving 10% annually: 18.6 years
- Time to reach goal when saving 20% annually: 9.3 years
12. Cashier: $21,710 average salary
- Time to reach goal when saving 10% annually: 25.3 years
- Time to reach goal when saving 20% annually: 12.7 years
Source: “Depending on Your Job, It Could Take 2 Years – or 25 – to Save for a House,” realtor.com® (Aug. 14, 2017)
