Class Of 2025 Won't Be Able To Afford To Buy A Home Until 2034, Mortgageresearch Report Finds

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State-by-State Analysis Reveals Sharp Gaps in Homebuying Timelines for New College Graduates

• Student loan debt adds nearly five years to the average homebuying timeline for new graduates
• Geography matters: In Hawaii, grads may have to wait until 2043 to buy, while in West Virginia, it's 2030
• Even in affordable states, low starting salaries and student loan payments limit saving power

COLUMBIA, Mo., May 8, 2025 /PRNewswire/ -- A new MortgageResearch analysis released today paints a sobering picture for the Class of 2025: The average new college graduate is unlikely to be able to afford a home until April 2034 - nearly a full decade after graduation - due to a triple threat of skyrocketing home prices, student loan debt and modest starting salaries.

The study estimates how long it would take graduates in each state to save a 10% down payment, factoring in average starting salaries, home values and federal student loan payments. Although the national average points to a nine-year savings journey, the timeline varies drastically depending on geography.

In West Virginia, new grads can expect to purchase a home in just 4.9 years, becoming homeowners by April 2030. But in Hawaii, where the average 10% down payment exceeds $98,000, it could take nearly 18 years, delaying homeownership until February 2043.

"These numbers highlight how geography influences the path to homeownership for first-time buyers," said Tim Lucas, lead analyst at MortgageResearch. "Where you land your first job and choose to live can be just as important as your degree. But it's not just about home prices. Even in more affordable markets, it's the weight of student loan debt that often dictates how long new grads will wait before they can buy a home."

Aggressive Savings, Slim Returns

The study assumes an ambitious savings model: graduates devote 13.8% of their gross income toward student loan payments and a future down payment, nearly three times the national personal saving rate reported by the Bureau of Economic Analysis.

The average 2025 graduate is projected to earn $64,598 annually, according to Legacy Online School. Graduates without student loans could save around $743 per month. Once the typical $410 monthly student loan payment is made, graduates are left with $333 to put toward saving for a down payment.

The analysis found that student loan debt delays homeownership by an average of 4 years and 8 months. Without student debt, a graduate could buy a home by August 2029. But with debt, the target shifts to April 2034.

Student Loan Debt Delays Homeownership, Even in Affordable Markets

Even in markets with lower home prices, the burden of student loan debt can significantly delay homeownership. While lower home prices may initially seem like an advantage, they don't always lead to faster home purchases for recent grads, as student debt often erodes the ability to save for a down payment.

For example, in Mississippi, where the average home price is just $180,641, the lower cost of housing might seem to provide a quicker path to homeownership. However, with an average starting salary of only $52,266, new grads can save just $177 per month after student loan payments. This results in a homebuying horizon pushed to October 2033, despite the relatively affordable home prices.

Similarly, in West Virginia, where homes cost $167,346 on average, the potential to buy a home sooner is undercut by the same challenge of student loan debt. Graduates may have a lower down payment goal, but they'll still face delays due to limited savings capacity.

In contrast, new grads in metros like Washington, D.C., where the average starting salary is the highest in the nation ($79,235), still face significant delays due to the weight of student debt. Washington, D.C., grads carry an average student loan balance of $54,795, and with high home prices ($723,888), their purchase date is delayed until October 2038, more than 13 years after graduation.

Pathways to Accelerate Homeownership
Despite the bleak averages, Lucas noted first-time buyers have options to shorten the wait, including exploring

• Zero-down options: USDA and VA loans offer 0% down payment programs for eligible buyers.
  
• Low-down programs: FHA and conventional loans may require just 3%.
  
• Seller concessions: Buyers can negotiate to have sellers cover closing costs.
  
• Graduation gifts: Recent changes to lending guidelines allow monetary gifts from family - and even non-relatives - to be used as down payments without requiring a gift letter (subject to certain conditions).

"The housing market is the toughest it's been for first-time buyers since the 1980s," he said. "But if new grads continue their learning about the housing market and available programs, they can close the gap faster. Their next diploma will come with a set of keys."

Average Time to Save for a Downpayment by State

State	Years to Buy a Home	Month/Yr. With Student Loans	Month/Yr Without Student Loans	Avg. Home Price	Down Payment Amount	Avg. Starting Salary	Avg. Student Loan
U.S. Average	9.0	April 2034	Aug. 2029	$385,994	$38,599	$64,598	$36,043
Alabama	7.1	June 2032	Jan. 2028	$225,431	$22,543	$60,156	$37,709
Alaska	8.8	Feb. 2034	June 2029	$385,786	$38,579	$67,221	$35,821
Arizona	10.1	May 2035	Feb. 2030	$438,202	$43,820	$66,683	$35,675
Arkansas	6.7	Jan. 2032	Jan. 2028	$210,385	$21,039	$56,314	$33,858
California	12.3	Aug. 2037	Oct. 2032	$809,893	$80,989	$78,278	$38,168
Colorado	10.7	Dec. 2035	Dec. 2030	$564,641	$56,464	$73,072	$37,392
Connecticut	8.0	May 2033	July 2029	$440,359	$44,036	$75,975	$36,672
Delaware	10.4	Sept. 2035	Sept. 2029	$389,709	$38,971	$64,157	$38,683
District of Columbia	13.5	Oct. 2038	Dec. 2031	$723,888	$72,389	$79,235	$54,795
Florida	11.8	Feb. 2037	June 2030	$407,588	$40,759	$58,009	$39,262
Georgia	10.2	July 2035	Jan. 2029	$330,822	$33,082	$64,185	$42,026
Hawaii	17.8	Feb. 2043	Dec. 2036	$985,731	$98,573	$61,448	$38,158
Idaho	11.6	Dec. 2036	March 2031	$462,848	$46,285	$57,342	$33,281
Illinois	6.2	July 2031	Feb. 2028	$277,745	$27,774	$71,127	$39,055
Indiana	6.4	Oct. 2031	April 2028	$245,728	$24,573	$60,573	$33,243
Iowa	5.4	Sept. 2030	Jan. 2028	$224,230	$22,423	$60,754	$30,925
Kansas	6.0	May 2031	Feb. 2028	$231,494	$23,149	$60,620	$33,119
Kentucky	5.8	Feb. 2031	Dec. 2027	$217,893	$21,789	$60,185	$33,470
Louisiana	6.5	Oct. 2031	Nov. 2027	$201,844	$20,184	$57,107	$34,866
Maine	11.3	Aug. 2036	July 2030	$397,214	$39,721	$55,592	$34,292
Maryland	9.5	Oct. 2034	June 2029	$438,225	$43,823	$76,748	$43,692
Massachusetts	10.4	Sept. 2035	April 2031	$658,566	$65,857	$79,985	$35,529
Michigan	6.3	Aug. 2031	Feb. 2028	$246,409	$24,641	$64,810	$36,974
Minnesota	6.6	Dec. 2031	Nov. 2028	$344,161	$34,416	$71,254	$34,071
Mississippi	8.5	Oct. 2033	Nov. 2027	$180,641	$18,064	$52,266	$37,254
Missouri	7.0	May 2032	April 2028	$253,141	$25,314	$61,418	$35,675
Montana	12.3	Aug. 2037	June 2031	$460,766	$46,077	$54,642	$33,945
Nebraska	6.6	Dec. 2031	June 2028	$265,570	$26,557	$61,239	$32,377
Nevada	11.2	July 2036	Nov. 2030	$466,050	$46,605	$60,775	$34,589
New Hampshire	10.0	April 2035	June 2030	$507,234	$50,723	$71,325	$34,884
New Jersey	9.5	Oct. 2034	June 2030	$566,880	$56,688	$80,114	$37,201
New Mexico	10.2	June 2035	May 2029	$309,382	$30,938	$55,421	$34,280
New York	9.2	July 2034	Oct. 2029	$461,467	$46,147	$74,504	$38,690
North Carolina	10.0	May 2035	March 2029	$334,161	$33,416	$62,338	$38,695
North Dakota	6.2	July 2031	July 2028	$274,293	$27,429	$61,164	$29,647
Ohio	5.7	Dec. 2030	Dec. 2027	$236,650	$23,665	$64,933	$35,033
Oklahoma	6.3	Sept. 2031	Jan. 2028	$209,265	$20,926	$55,663	$32,103
Oregon	11.1	May 2036	Nov. 2030	$509,299	$50,930	$67,100	$37,829
Pennsylvania	6.6	Dec. 2031	May 2028	$273,566	$27,357	$65,678	$36,267
Rhode Island	10.0	May 2035	July 2030	$486,649	$48,665	$68,084	$33,270
South Carolina	9.8	Feb.2035	Dec. 2028	$300,430	$30,043	$60,590	$38,770
South Dakota	8.6	Dec. 2033	April 2029	$309,377	$30,938	$56,517	$30,928
Tennessee	9.4	Sept. 2034	Feb. 2029	$319,357	$31,936	$61,189	$36,886
Texas	6.6	Dec. 2031	Aug.2028	$304,532	$30,453	$66,474	$33,581
Utah	11.5	Oct. 2036	July 2031	$541,641	$54,164	$63,247	$33,746
Vermont	11.7	Jan. 2037	May 2030	$392,398	$39,240	$56,741	$38,404
Virginia	8.5	Oct. 2033	April 2029	$406,016	$40,602	$74,468	$40,137
Washington	10.3	Sept. 2035	Jan. 2031	$618,364	$61,836	$78,485	$36,762
West Virginia	4.9	April 2030	June 2027	$167,346	$16,735	$56,648	$32,358
Wisconsin	7.1	June 2032	Nov. 2028	$315,763	$31,576	$64,320	$32,628
Wyoming	9.5	Nov. 2034	Oct. 2029	$356,665	$35,666	$58,331	$31,503

To view the full report, including methodology details, please visit:

About MortgageResearch
Based in Columbia, Missouri, MortgageResearch provides real estate advice, research, and news to help homebuyers navigate the mortgage landscape. With a focus on simplifying decisions around homeownership, the site delivers in-depth analyses and reports on market trends, lending practices, and homebuying tips.

Mortgage Research Center, LLC | 1-855-857-3936 | 1400 Forum Blvd., Columbia, MO 65203
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SOURCE Mortgage Research Center

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