College Grads Face Nearly a Decade Wait to Buy a Home, Study Finds

May 15, 2025 - 3 min read

As the Class of 2025 flips their tassels and steps into the next chapter, many may be wondering: When can I afford a home of my own?

According to a new study from the Mortgage Research Center, the answer — for most — is about nine years.

That’s the average time it would take a college graduate earning today’s entry-level salary to save for a 10% down payment on a typical starter home. It’s longer than many expect, but it’s not a dead end. In fact, this timeline offers a clear, data-backed roadmap for turning the dream of homeownership into a real, achievable goal.

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A degree still opens doors — just a bit later

According to the Mortgage Research Center’s study, new graduates with a bachelor’s degree — earning an average starting salary of $64,598 — could afford a home by April 2034, assuming they consistently save 13.8% of their income. This timeline assumes a 10% down payment on a median-priced U.S. home, currently about $385,994.

Higher education can still lead to better-paying, more stable jobs — key ingredients in qualifying for a mortgage and saving with purpose. While rent, student loans, and inflation present real hurdles, the data shows that homeownership isn’t slipping out of reach. It just requires a different pace — and plan — than in years past.

Where you live can shape the timeline

Not all graduates will follow the same path. The study highlights major differences in homebuying timelines based on location.

In states with more affordable housing markets, new grads could buy much sooner. West Virginia leads the pack, where the average graduate could reach their down payment goal in under five years. On the other end of the spectrum is Hawaii, where high home prices stretch the timeline to nearly 18 years.

Midwestern and Southern states — like Ohio, Indiana, and Iowa — tend to offer faster paths to ownership. High-cost coastal states, especially in the West, extend the wait well beyond a decade.

Where a graduate chooses to live and work could make all the difference in how soon that first home becomes a reality. Below is the full data breakout by state, according to Mortgage Research Center:

StateYears to BuyHomebuying Month/Yr With Student LoansHomebuying Month/Yr Without Student LoansAverage Home PriceAverage Starting SalaryAverage Student Loan
U.S. Average9.0April 2034August 2029$385,994$64,598$36,043
Alabama7.1June 2032January 2028$225,431$60,156$37,709
Alaska8.8February 2034June 2029$385,786$67,221$35,821
Arizona10.1May 2035February 2030$438,202$66,683$35,675
Arkansas6.7January 2032January 2028$210,385$56,314$33,858
California12.3August 2037October 2032$809,893$78,278$38,168
Colorado10.7December 2035December 2030$564,641$73,072$37,392
Connecticut8.0May 2033July 2029$440,359$75,975$36,672
Delaware10.4September 2035September 2029$389,709$64,157$38,683
District of Columbia13.5October 2038December 2031$723,888$79,235$54,795
Florida11.8February 2037June 2030$407,588$58,009$39,262
Georgia10.2July 2035January 2029$330,822$64,185$42,026
Hawaii17.8February 2043December 2036$985,731$61,448$38,158
Idaho11.6December 2036March 2031$462,848$57,342$33,281
Illinois6.2July 2031February 2028$277,745$71,127$39,055
Indiana6.4October 2031April 2028$245,728$60,573$33,243
Iowa5.4September 2030January 2028$224,230$60,754$30,925
Kansas6.0May 2031February 2028$231,494$60,620$33,119
Kentucky5.8February 2031December 2027$217,893$60,185$33,470
Louisiana6.5October 2031November 2027$201,844$57,107$34,866
Maine11.3August 2036July 2030$397,214$55,592$34,292
Maryland9.5October 2034June 2029$438,225$76,748$43,692
Massachusetts10.4September 2035April 2031$658,566$79,985$35,529
Michigan6.3August 2031February 2028$246,409$64,810$36,974
Minnesota6.6December 2031November 2028$344,161$71,254$34,071
Mississippi8.5October 2033November 2027$180,641$52,266$37,254
Missouri7.0May 2032April 2028$253,141$61,418$35,675
Montana12.3August 2037June 2031$460,766$54,642$33,945
Nebraska6.6December 2031June 2028$265,570$61,239$32,377
Nevada11.2July 2036November 2030$466,050$60,775$34,589
New Hampshire10.0April 2035June 2030$507,234$71,325$34,884
New Jersey9.5October 2034June 2030$566,880$80,114$37,201
New Mexico10.2June 2035May 2029$309,382$55,421$34,280
New York9.2July 2034October 2029$461,467$74,504$38,690
North Carolina10.0May 2035March 2029$334,161$62,338$38,695
North Dakota6.2July 2031July 2028$274,293$61,164$29,647
Ohio5.7December 2030December 2027$236,650$64,933$35,033
Oklahoma6.3September 2031January 2028$209,265$55,663$32,103
Oregon11.1May 2036November 2030$509,299$67,100$37,829
Pennsylvania6.6December 2031May 2028$273,566$65,678$36,267
Rhode Island10.0May 2035July 2030$486,649$68,084$33,270
South Carolina9.8February 2035December 2028$300,430$60,590$38,770
South Dakota8.6December 2033April 2029$309,377$56,517$30,928
Tennessee9.4September 2034February 2029$319,357$61,189$36,886
Texas6.6December 2031August 2028$304,532$66,474$33,581
Utah11.5October 2036July 2031$541,641$63,247$33,746
Vermont11.7January 2037May 2030$392,398$56,741$38,404
Virginia8.5October 2033April 2029$406,016$74,468$40,137
Washington10.3September 2035January 2031$618,364$78,485$36,762
West Virginia4.9April 2030June 2027$167,346$56,648$32,358
Wisconsin7.1June 2032November 2028$315,763$64,320$32,628
Wyoming9.5November 2034October 2029$356,665$58,331$31,503

Knowledge is power for the Class of 2025

Rather than discouraging, the study offers a powerful tool: clarity. Knowing the likely timeline — and the key financial levers that shape it — can help new graduates start making intentional decisions now.

That might mean setting up a savings plan, building credit, or exploring first-time buyer programs that reduce down payment hurdles. In some cases, it could mean considering lower-cost housing markets where the dream is more within reach.

The important thing is this: the dream of homeownership is still alive. It just doesn’t happen overnight.

The bottom line

The road to homeownership may wind through rising rents, student loan payments, and economic uncertainty — but with the right strategy, the Class of 2025 can still get there. Early savings, smart credit habits, and awareness of low-to-no down payment programs can make all the difference.

For new grads with big dreams and steady determination, that first set of house keys could arrive before the end of their 20s — or at least not long after. The timeline may have changed, but the destination remains the same.

Aleksandra Kadzielawski
Authored By: Aleksandra Kadzielawski
The Mortgage Reports Editor
Aleksandra is endlessly curious about the housing market and loves turning what she learns into helpful content. She's a DePaul alum, licensed real estate agent, and NAR member who traded Chicago winters for Phoenix sunshine.
Paul Centopani
Reviewed By: Paul Centopani
The Mortgage Reports Editor
Paul Centopani is a writer and editor who started covering the lending and housing markets in 2018. Previous to joining The Mortgage Reports, he was a reporter for National Mortgage News. Paul grew up in Connecticut, graduated from Binghamton University and now lives in Chicago after a decade in New York and the D.C. area.