The Struggle to Save for a Down Payment in Los Angeles: Study Shows It Could Take Over a Decade

The struggle to save up for a down payment on a home in Los Angeles is real, with a new study by SmartAsset revealing that it could take the average Angeleno over 11 years to save enough money. The study used median income figures and assumed that workers would save 20% of their income each year for a down payment on a median-priced home in Los Angeles.

The findings showed that California dominates the total time needed to save up for a down payment, with Los Angeles topping the list. An average L.A. resident would need to save for nearly 7 years for a 12% down payment or over 11 years for a 20% down payment, which is twice as long as the national average.

With the median home value in Los Angeles at around $812,800, many other California cities were also near the top of the list. San Francisco came in at No. 2, with homebuyers needing to save for just under 11 years. Long Beach ranked at No. 5, requiring buyers to save for 9.39 years for a 20% down payment on a median-priced home.

While a 20% down payment is recommended, it’s not required. Some lenders offer financing options with as little as 3-5% down, or even zero down in some cities, assuming you have decent credit. However, paying less upfront means higher monthly payments and a more expensive overall cost due to interest.

For more information on the SmartAsset study and to see the full list of cities that topped the list for years needed to save up for a down payment, visit their website.