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📂 Category: Buying a Home,Mortgage,Personal Finance
📌 Here’s what you’ll learn:
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Key takeaways
- People under 35 had an average transaction account balance of $5,400 as of 2022 and a median balance of $21,000. Those ages 35-44 had a median of $7,500 and a median of $42,000. For those between the ages of 45 and 54, the median was $9,000 and the median was $71,000.
- The average down payment for a home in the United States is about $60,000, as of the third quarter of 2025.
- If you’re looking to buy a home in your 30s or 40s, you can boost your savings by seeking down payment assistance, strategically paying off debt, and by dipping into retirement accounts, when possible.
If you’re thinking about buying a home, one of the first things you’ll need to know is how much cash you have available for the down payment, closing costs and other expenses.
To determine whether you’re on the right track, it’s helpful to see where other savers are. Below, we’ll explore the average and median savings account balances for ages 30 to 40 so you can compare your situation.
What has the average person saved in their 30s and 40s
How much have most people in the United States saved in their 30s and 40s? The Federal Reserve’s Survey of Consumer Finances can answer this question.
| Average transaction account balances by age | ||||||
|---|---|---|---|---|---|---|
| Under 35 | 35-44 | 45-54 | 55-64 | 65-74 | 75 or older | |
| 2013 | $2800 | $4840 | $5090 | $6,360 | $8,910 | $8,910 |
| 2016 | $3,150 | $4,690 | $5010 | $6,620 | $9,870 | $12,330 |
| 2019 | $3760 | $5,460 | $7420 | $6,520 | $9,270 | $10,780 |
| 2022 | $5400 | $7500 | $8700 | $8000 | $13,400 | $10,000 |
Each number in the tables represents transaction accounts (including savings accounts, checking accounts, money market accounts, cash brokerage accounts, and prepaid debit cards) of survey respondents in 2022 dollars.
| Average transaction account balances by age | ||||||
|---|---|---|---|---|---|---|
| Under 35 | 35-44 | 45-54 | 55-64 | 65-74 | 75 or older | |
| 2013 | $12,830 | $36,920 | $39,370 | $67,830 | $69,800 | $65,420 |
| 2016 | $11,830 | $30,820 | $50,040 | $70,570 | $83,470 | $63,440 |
| 2019 | $13,040 | $32,360 | $55,880 | $66,850 | $70,030 | $64,130 |
| 2022 | $20,540 | $41,540 | $71,180 | $72,520 | $100,250 | $82,800 |
While the Survey of Consumer Finances does not provide detailed information about the account balances of respondents at age 30 or 40, we can identify a discrepancy in savings balances between individuals under 35 and those between 35 and 44. As of 2022, these two groups had median transaction account balances of $5,400 and $7,500, respectively, and median transaction account balances of $20,540 and $41,540, respectively.
Can most people afford the down payment and closing costs?
Given the average numbers above (and some average numbers as well), a down payment seems out of reach for many Americans – not to mention all the other costs associated with the homebuying process. Typical closing costs range, for example, from 3% to 6% of the purchase price.
The median sales price of homes sold in the United States was $410,800 as of the second quarter of 2025. The average down payment on a home was 14.4% as of the third quarter of 2025, according to Realtor.com. Using this data — the most recent data available — the average down payment for a median-priced home would be $59,000, and typical closing costs for a median-priced home would range between $12,320 and $24,650.
important
Even the smallest allowable down payment — 3%, which is only possible for first-time homebuyers — could exceed $12,000 based on the median home price in the United States. This still exceeds the average transaction account savings for those under 65.
Boost your savings to buy a home
High prices and high interest rates can make purchasing a home very difficult.
If you’re looking to increase your savings before a potential purchase, consider using a high-yield savings account. This will help you save faster, as these accounts have higher interest rates. You can also look into down payment assistance programs through your employer, your local government, or independent organizations. It’s also a good idea to pay off debt strategically.
You might also consider tapping into your retirement savings to help finance a home purchase — as a first-time homebuyer, you can withdraw up to $10,000 from an Individual Retirement Account (IRA). Another option is to borrow from your 401(k). Or you can withdraw what you contributed to a Roth IRA.
However, each of these options comes with drawbacks and things to consider. Take your time, and ask for help if you need it.
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