Middle-income earners in California need more than 10 years of consistent savings to afford a home, according to a new report by Leave the Key Homebuyers, a real estate analytics firm.

The report, based on data from the U.S. Bureau of Economic Analysis (BEA) and the Census Bureau, analyzed how long it would take to save for a 20% down payment on a median-priced home across all 50 states. In California, the median home price was $725,800 as of the end of 2023, while the average annual after-tax income for a middle-income household was $69,140 (or $5,762 per month).
After subtracting essential living expenses, the average monthly amount available for saving was $1,150, making the estimated time to save for a down payment roughly 10 years and 6 months.
Hawaii ranked as the least affordable state for homebuyers. With a median home price of $846,400 and an average monthly post-tax income of $4,857, residents could save only $489 a month. At that rate, it would take 28 years and 10 months to save for a 20% down payment — the longest timeline in the country.
Hannah Jones, senior economic analyst at Realtor.com, explained that both California and Hawaii face limited housing supply at lower price points despite high demand. “Geographic constraints and strict land use regulations have restricted new construction, pushing prices higher,” she said.
Experts added that these areas also attract many high-income earners and second-home buyers, further squeezing out local residents seeking primary residences.
Jee Lee, director of the nonprofit Shalom Center, noted that buyers with larger families may face even longer savings timelines. “Still, with government assistance and lender support programs, homeownership remains possible even for those lacking full down payment funds,” he said.
Following California, Utah came next in terms of savings burden, where buyers needed an average of 8 years and 5 months to save for a home. Other states with similarly long timelines included Arizona (8 years 4 months), Georgia and Oregon (7 years 6 months each), followed by Florida, Nevada, Idaho, and Delaware.
In contrast, Wyoming offered the shortest path to homeownership. With a median home price of $298,700 and a monthly post-tax income averaging $6,058, it would take just 1 year and 11 months to save for a 20% down payment.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]