The State of Savings in America: How Millennials and Boomers Compare

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National Savings Day, which is on Oct. 12, serves as a reminder to all generations that developing smart savings habits today builds a strong foundation that enables you to reach important milestones, like saving to buy a home or plan for retirement, within your financial journey.

However, many generations struggle to save money. GOBankingRates recently surveyed 1,023 Americans and asked respondents how much money they have in the bank to learn more about each generation’s savings habits.

• For overall respondents, 23% of Americans said they have no savings. An additional 17% of overall Americans said they had less than $500 in savings.
• Nearly 50% of millennials (ages 28 through 43) said they did not have any savings while 33% of millennials have less than $500 saved.
• 21% of baby boomers (ages 55 to 64) do not have any savings. An additional 13% of boomers said they have less than $500 in savings.

The Savings Needed To Buy a Home: Millennials vs. Boomers

One of the toughest savings challenges for Americans is the rising cost of homeownership in recent decades. The savings needed for millennials to buy a first home is drastically different than boomers, even when adjusting for inflation.

In a new analysis, GOBankingRates uncovered how much savings was needed to buy a home in 1970, when many boomers bought their first homes, versus 2024. Each state’s 1970 home value (not adjusted for inflation) was sourced and the amount of savings was then determined for a 20% down payment in 1970 (also not adjusted for inflation) and in 1970 dollars. Using Zillow to find the 2024 home value in each state, GObankingRates found the same figures adjusted for inflation and in 2024 dollars. The savings needed to afford a 20% down payment was then calculated for all 50 states.

Key Findings

• Nationwide, the savings needed for a 20% down payment has increased by around $45,000 for homeowners, when adjusted for inflation. In 1970, homeowners needed $3,400 for a 20% down payment on the average home, compared to $71,688 in 2024. Without adjusting for inflation, this is an increase of more than $68,000.
• On the statewide level, the savings needed for a 20% down payment increased by more than $100,000 in Hawaii and California, when adjusted for inflation.
• Buyers purchasing a home in Florida in 1970 needed $24,215 (in 2024 dollars) for a 20% down payment. In 2024, this amount is $83,244. That’s a difference of $59,028, more than triple the amount of savings needed in 1970.

Below are the 15 states that are the most expensive, and require significant savings, to buy a home in 2024:

1. Hawaii

• Home value in 1970 (not adjusted for inflation): $35,100
• Home value in 1970 (in 2024 dollars): $283,316
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $56,663

• Home value in 2024 (in 2024 dollars): $971,644
• Savings needed for 20% down payment (2024): $194,329

• Difference needed from 1970 to 2024 at 20% down: $137,666

2. California

• Home value in 1970 (not adjusted for inflation): $23,100
• Home value in 1970 (in 2024 dollars): $186,456
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $37,291

• Home value in 2024 (in 2024 dollars): $783,233
• Savings needed for 20% down payment (2024): $156,647

• Difference needed from 1970 to 2024 at 20% down: $119,355

3. Massachusetts

• Home value in 1970 (not adjusted for inflation): $20,600
• Home value in 1970 (in 2024 dollars): $166,277
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $33,255

• Home value in 2024 (in 2024 dollars): $638,221
• Savings needed for 20% down payment (2024): $127,644

• Difference needed from 1970 to 2024 at 20% down: $94,389

4. Washington

• Home value in 1970 (not adjusted for inflation): $18,500
• Home value in 1970 (in 2024 dollars): $149,326
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $29,865

• Home value in 2024 (in 2024 dollars): $599,937
• Savings needed for 20% down payment (2024): $119,987

• Difference needed from 1970 to 2024 at 20% down: $90,122

5. Colorado

• Home value in 1970 (not adjusted for inflation): $17,300
• Home value in 1970 (in 2024 dollars): $139,640
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $27,928

• Home value in 2024 (in 2024 dollars): $554,704
• Savings needed for 20% down payment (2024): $110,941

• Difference needed from 1970 to 2024 at 20% down: $83,013

6. Utah

• Home value in 1970 (not adjusted for inflation): $16,800
• Home value in 1970 (in 2024 dollars): $135,604
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $27,121

• Home value in 2024 (in 2024 dollars): $526,498
• Savings needed for 20% down payment (2024): $105,300

• Difference needed from 1970 to 2024 at 20% down: $78,179

7. Oregon

• Home value in 1970 (not adjusted for inflation): $15,400
• Home value in 1970 (in 2024 dollars): $124,304
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $24,861

• Home value in 2024 (in 2024 dollars): $502,915
• Savings needed for 20% down payment (2024): $100,583

• Difference needed from 1970 to 2024 at 20% down: $75,722

8. New Hampshire

• Home value in 1970 (not adjusted for inflation): $16,400
• Home value in 1970 (in 2024 dollars): $132,376
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $26,475

• Home value in 2024 (in 2024 dollars): $496,107
• Savings needed for 20% down payment (2024): $99,221

• Difference needed from 1970 to 2024 at 20% down: $72,746

9. Montana

• Home value in 1970 (not adjusted for inflation): $14,000
• Home value in 1970 (in 2024 dollars): $113,004
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $22,601

• Home value in 2024 (in 2024 dollars): $466,044
• Savings needed for 20% down payment (2024): $93,209

• Difference needed from 1970 to 2024 at 20% down: $70,608

10. New Jersey

• Home value in 1970 (not adjusted for inflation): $23,400
• Home value in 1970 (in 2024 dollars): $188,878
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $37,776

• Home value in 2024 (in 2024 dollars): $541,083
• Savings needed for 20% down payment (2024): $108,217

• Difference needed from 1970 to 2024 at 20% down: $70,441

11. Idaho

• Home value in 1970 (not adjusted for inflation): $14,100
• Home value in 1970 (in 2024 dollars): $113,811
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $22,762

• Home value in 2024 (in 2024 dollars): $452,272
• Savings needed for 20% down payment (2024): $90,454

• Difference needed from 1970 to 2024 at 20% down: $67,692

12. Rhode Island

• Home value in 1970 (not adjusted for inflation): $18,200
• Home value in 1970 (in 2024 dollars): $146,905
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $29,381

• Home value in 2024 (in 2024 dollars): $469,057
• Savings needed for 20% down payment (2024): $93,811

• Difference needed from 1970 to 2024 at 20% down: $64,430

13. Arizona

• Home value in 1970 (not adjusted for inflation): $16,300
• Home value in 1970 (in 2024 dollars): $131,569
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $26,314

• Home value in 2024 (in 2024 dollars): $439,357
• Savings needed for 20% down payment (2024): $87,871

• Difference needed from 1970 to 2024 at 20% down: $61,558

14. Maine

• Home value in 1970 (not adjusted for inflation): $12,800
• Home value in 1970 (in 2024 dollars): $103,318
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $20,664

• Home value in 2024 (in 2024 dollars): $400,648
• Savings needed for 20% down payment (2024): $80,130

• Difference needed from 1970 to 2024 at 20% down: $59,466

15. Florida

• Home value in 1970 (not adjusted for inflation): $15,000
• Home value in 1970 (in 2024 dollars): $121,075
• Savings needed for 20% down payment in 1970 (in 2024 dollars): $24,215

• Home value in 2024 (in 2024 dollars): $416,218
• Savings needed for 20% down payment (2024): $83,244

• Difference needed from 1970 to 2024 at 20% down: $59,028

Tips for Building Up Savings To Reach Your Financial Goals

Whether your financial goals are buying a home, planning for retirement, purchasing a car or planning a wedding, the savings you’re able to start building now will help you achieve these milestones. If you need help building up your savings, these tips will be able to help you.

• Understand your current financial picture. Write down your monthly household income and everything you spend money on throughout the month. This includes but is not limited to rent and/or mortgage, car payments and insurance, groceries and utilities. If you have any outstanding debt, like student loans or credit cards, write down the remaining balance and interest rates. Subtract your monthly expenditures from your monthly income to see how much you have leftover and how much can be put into savings. If you don’t have any money left over or are in the red, start looking for expenditures to eliminate like TV streaming services or dining out for lunch every day.
• Start a budget, if you don’t already have one. Your budget will allow you to track expenses in the fixed, variable and periodic categories. After a few months of tracking your spending, you’ll have a better understanding of how much you spend in a typical month and how to accurately budget.
• Keep your savings in a high-yield savings account. The higher the interest on these accounts, the better in order to grow the savings balance.
• Take advantage of 401(k) matching programs. If your employer offers a match, take it to avoid leaving free money on the table.
• Put any windfalls of money directly into savings. This includes tax refunds and holiday bonuses.

Methodology: For this piece, GOBankingRates first found the 1970 home value (not adjusted for inflation) for each state as sourced from the U.S. Census. With this figure, GOBankingRates was able to determine the savings one would need for a 20%, 15% and 10% down payment in 1970 not adjusted for inflation and in 1970 dollars. GOBankingRates then found those same figures but adjusted for inflation and in 2024 dollars. GOBankingRates then using Zillow found the 2024 home value in each state as well as the savings needed to afford a 20%, 15% and 10% down payment. With these figures GOBankingRates found the 54-year difference in home value, the 54-year difference in savings needed for 20%, 15% and 10% down payment both adjusted and not adjusted for inflation. All data was collected and up to date as of Sept. 26, 2024.

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