Typical US Home Down Payment Declines for the First Time in Two Years

On Monday, Redfin reported that the typical US homebuyer’s down payment was $62,468 in April, down by roughly 1% year-over-year. This marks the first annual decline in nearly two years.

Redfin notes that the report is based on its analysis of county records across 40 of the most populous metropolitan areas. April is the most recent month for which data is available.

In percentage terms, the typical homebuyer puts down 15% of the purchase price, essentially unchanged from 15.1% a year earlier. The median down payment has been around 15% for the last four years, dipping into the 10% range in early 2023. Before the pandemic, the typical down payment was around 10%.

Redfin points out that the last time dollar-amount down payments fell year-over- year was in the summer of 2023, when home-sale prices were falling. At that time, the decline in home prices was the main reason down payments were falling: when prices are lower, the percentage buyers put down is lower. Now, home prices are rising; they increased 1.4% year-over-year in April. But home-price growth is slowing: for comparison, prices were up roughly 4% at this time in 2024. Slowing price growth is one contributor to lower down payments.

Down payments are falling in dollar terms even though overall home prices are rising slightly because not all homebuyers make a down payment; nearly one-third of buyers pay in all cash. It’s likely that the people buying homes with a mortgage bought cheaper homes, reducing down payments, Redfin said. That also explains why down payments stayed flat in percentage terms but declined in dollar terms. Additionally, a slightly higher share of homebuyers are using FHA and VA loans, which require lower down payments. That can push down-payment dollar amounts down.