After home prices in the U.S. reached record highs, the typical down payment needed to afford a home is beginning to drop. According to a report from real estate marketing platform Realtor.com, the median U.S. down payment averaged 14.5%, or about $30,000, between July and September 2024. This was a $2,700 drop from the previous quarter’s peak of 14.9%, or about $32,700. Some states, however, saw even larger drops. The largest declines were seen in Florida, Texas, and Wyoming. In these states, the median down payment decreased by 24%, 23.2%, and 22.3%, respectively.
So why are down payments dropping? Fewer homebuyers are out there, which gives those who do brave today’s market more leverage, according to Realtor.com senior economic research analyst Hannah Jones.
“The annual decline in down payments is the result of less buyer competition in the third quarter,” Jones says. “Easing demand and increasing inventory gave buyers more flexibility last quarter, which led to slightly lower down payments.”
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