Buying a home in your 30s or 40s requires a hefty down payment. Under 35, the median transaction account is $5,400, while the 35-44 range is $7,500. The average down payment in the U.S. is around $60,000, making it challenging for many Americans to afford a home.

To determine your readiness to buy a home, compare your savings to the average and median balances of others in their 30s and 40s. The Federal Reserve’s Survey of Consumer Finances provides insight into this. Median transaction account balances have increased over the years, with those under 35 having $5,400 in 2022.

The high cost of homes, with a median sales price of $410,800, makes saving for a down payment challenging. Even the smallest 3% down payment is over $12,000, beyond the reach of many Americans. High prices and interest rates further complicate home buying.

To boost savings for a home purchase, consider using a high-yield savings account, down payment assistance programs, and strategically paying down debt. You can also dip into retirement savings, but be aware of the drawbacks and implications before doing so. Take your time and seek advice if needed.

Read more at Yahoo Finance: Are You Saving Enough to Buy a Home in Your 30s or 40s? Compare Your Amount to the National Average