The Average Down Payment Buyers Are Making Right Now—And How Yours Compares

Core Insights - The average down payment for homebuyers between July 2024 and June 2025 is approximately 19% of the purchase price, marking the highest share in over 30 years [1][9] - This figure is nearly double the down payment percentage seen in the years following the 2008–09 housing crash and significantly higher than the 12% average just before the pandemic in 2020 [2] Down Payment Trends - Down payments have been steadily increasing over the past decade, indicating that current buyers are generally better-resourced or equity-rich [2] - A 19% down payment translates to about $82,300 based on the median U.S. home price of $433,200 [2] First-Time vs. Repeat Buyers - First-time buyers typically make a down payment of about 10%, which is approximately $43,300 on a median-priced home, while repeat buyers average 23%, or about $99,600 [4] - The disparity in down payment amounts is attributed to the funding sources; first-time buyers often rely on savings and assistance, whereas repeat buyers utilize proceeds from previous home sales [5] Financial Implications of Down Payments - Paying a 20% down payment can save buyers thousands by avoiding private mortgage insurance (PMI), which can add significant monthly costs [6][9] - For instance, a 10% down payment on a median-priced home results in a loan balance of about $389,900, with PMI adding roughly $3,900 annually, equating to over $19,500 in five years without building equity [8] Strategies for Saving - To reach a 20% down payment and avoid PMI, buyers are encouraged to automate savings into high-yield accounts or consider certificates of deposit (CDs) for guaranteed growth [10][11]