Can giving up your lattes help you afford a home? Real estate experts think so

Is your latte habit holding you back on your journey to homeownership? A financial expert says yes, according to Realtor.com.

A daily coffee addiction, ride-sharing, dining out and alcohol are all eating into potential savings, according to Pamela Liebman, CEO of The Corcoran Group.

“Stop buying Starbucks coffee; I mean, stop spending money on things that are not necessary. It’s tremendous how fast that little nest egg can add up,” Liebman told Fortune.

With the median down payment for the third quarter of 2025 at $30,400 (according to Realtor.com) and mortgage interest rates near 6%, some prospective buyers are now considering taking the plunge into buying real estate.

Liebman emphasized the importance of cutting unnecessary spending to reach your goal.

“If you look at people who are taking an Uber instead of the subway, they’re buying their coffee, they’re buying their breakfast out, they’re spending money on things that are not necessary,” she said. “These things definitely start adding up. The subway is definitely cheaper than an Uber.”

But how long does one need to save? Saving for the median down payment may seem daunting, but the timeline depends on income, spending habits and local market conditions.

“How long it takes to save for a down payment depends heavily on income, spending, and local market conditions,” said Hannah Jones, senior economic research analyst at Realtor.com. “While small daily savings may not make a huge difference in today’s housing market, bigger moves — like sharing housing, moving in with family, or increasing income — can accelerate progress.”

Rent across the 50 largest metropolitan areas currently averages $1,703, slightly lower than in previous years, making it possible for some to save more aggressively.

Jessica Vance, a real estate agent in San Diego, noted that small sacrifices can add up.

“Those that are good stewards of money are not wasteful and do pay attention to the details with the long-term goal (down payment) in mind,” Vance said. She added that location plays a major role in determining affordability.

“If Gen Z really wants to purchase a home, perhaps they get an FHA loan, which asks for 3.5% down, and live in an affordable city to start. That would be the quickest path to homeownership,” Vance said.

With the national median list price at $425,000, some metropolitan areas still offer homes under $300,000 — an entry point for first-time buyers to build equity.

Inventory levels aren’t the issue — there are more than 1 million homes for sale — but available options vary by region.