Down Payment Diversity: How Much Homebuyers Are Putting Down Across the US

The amount that homebuyers are setting aside for their down payments varies significantly across the U.S. While down payments averaged around 13.8% during the third quarter of 2023—a decrease from 14.7% in the previous year—in some markets, such as Killeen, Texas, the average down payment is just 5.3% of the home sale price, totaling $2,182 for a home with the area’s median list price of $325,000.

On the other end of the spectrum, buyers in Santa Rosa, Calif., are putting down 25% for a total $147,550 of the median home list price of $1,070,990, Realtor.com reports.

The general rule of thumb is buyers should aim to kick in least 20%, which allows them to avoid paying private mortgage insurance each month. In September, that totaled $85,900 on the median-priced home of $429,500, according to Realtor.com data. (This doesn’t include closing and other costs.)

“When prices are rising so much faster than incomes, it’s hard to save more” for a down payment, says Sean Moss, executive vice president of product and operations at Down Payment Resource. “The goal post is always moving.”

Buyers generally need to put down more in the pricier, more competitive markets and in vacation and retirement destinations. Retirees can often sell their existing residences and use the money they earn to pay for their forever homes. And with mortgage rates hovering around 8%, many folks would rather put down more cash so they don’t have to pay interest on a larger loan.

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