The Average Down Payment for Houses is Now More Than $63,000

In today's housing market, buying a home has become more expensive, not just because home prices are going up but also because the amount of money you need for a down payment has increased. The latest information tells us that people are now paying more upfront when they buy homes.

According to Redfin, a website that keeps track of housing market data, the typical amount people are paying upfront – known as a down payment – has gone up both in the total amount of money and in what percentage of the home's price that money represents, compared to last year.

Even though these amounts have slightly dropped from the highest ever amounts recorded earlier this year, as home prices keep rising, buyers are choosing to pay more upfront. 

They do this hoping to make their monthly mortgage payments smaller since high home prices and mortgage rates of nearly 7% are causing monthly payments to be higher than many can afford.

The data shows that the average homebuyer is now putting down $63,188 as a down payment, which is 7.5% more than what buyers were paying a year ago ($58,800). When looking at percentages, this down payment is a little over 16% of the home's purchase price, up from the 15% buyers were typically paying last year.

Before the pandemic hit, a 10% down payment was more common. However, with home prices and mortgage costs increasing significantly, saving for a down payment has become more challenging. 

This situation has made the dream of owning a home harder to reach for many Americans, causing them to wait longer. As a result, the average age of first-time homebuyers has risen to nearly 40.

While there is some hope that the rapid increase in home prices might slow down, the supply of homes is still not enough to meet the demand, especially in big cities. This imbalance means buyers often end up paying more. However, in some areas, buyers are starting to have more power to negotiate.

Check out: Top 5 Loan Options for First-Time Homebuyers in 2025

The research also highlighted that down payments vary a lot depending on where you're buying in the United States. In California, for example, buyers typically pay a lot more upfront, with San Francisco buyers putting down 26.4% of the purchase price. On the other hand, buyers in Virginia Beach, Virginia, had the lowest typical down payment at only 3%.

Redfin's senior economist suggests that in some cases, it might be smarter not to spend all your savings on a huge down payment if you could use that money for future home improvements or other investments.

This trend in rising down payments reflects how the housing market is becoming more expensive and challenging for buyers, making saving for a home an important part of the buying process.

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