Redirecting discretionary spending could generate nearly $7,700 per year toward a down payment

COLUMBIA, Mo., Feb. 12, 2026 /PRNewswire/ -- By redirecting everyday discretionary spending on services like streaming, food delivery and social activities, young renters could save enough for a 5% down payment for a home in 35 of the top 50 U.S. housing markets in three years or less, according to Streaming or Starter Home?, a new Mortgage Research Network released today.

To estimate typical discretionary spending, the analysis drew on data from Deloitte's Digital Media Trends, an Ally Bank survey and other industry research, focused on Gen Z spending habits. The study examined four common categories of non-essential spending, including video and music streaming, food delivery, social activities and discretionary shopping. Together, they totaled an average of $641 per month.

Redirected into savings, that amount equals roughly $7,700 per year. In many U.S. housing markets, that level of consistent saving is enough to fund a 5% down payment on a median-priced home in just a few years. Although the national average is 2.7 years, local housing costs can dramatically speed up or slow down the path to a down payment.

Pittsburgh tops the list, where renters could save a 5% down payment in just 1.5 years. Other markets with relatively short timelines include Memphis, Oklahoma City, Birmingham, Ala., and Detroit, where prospective buyers could reach a 5% down payment in under two years.

At the opposite end of the spectrum, saving $641 per month could take much longer to accumulate a 5% down payment in the priciest markets. San Jose leads with 10.1 years, followed by San Francisco (7.1 years), Los Angeles (6.1 years), San Diego (6.0 years) and Boston (4.7 years),

"Gen Z isn't going to give up every convenience any more than Gen X would have given up buying Nirvana CDs," said Tim Lucas, the report's author and lead analyst at Mortgage Research Network. "But this study shows that there are non-essential expenses almost anyone can cut to reach a financial goal, whether that's homeownership, investing or building an emergency fund. Starting small can create a snowball effect that puts homeownership within reach in just a few years."

Although a 5% down payment is not required for all mortgage programs, it can help buyers qualify for better pricing and lower mortgage insurance costs, Lucas noted, adding that any savings beyond the down payment can also be used for emergency reserves, furnishings or home improvements.

Time To Save a 5% Down Payment: Top 50 U.S. Cities

To view the full report, including methodology details, please visit: https://www.mortgageresearch.com/articles/streaming-or-starter-home/

About Mortgage Research Network
Based in Columbia, Missouri, MortgageResearch.com 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.

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SOURCE Mortgage Research Network