Key takeaways
- Down payments reached an average of 13.6% and a median of $26,000 in the first quarter of 2024. Both values were down from the Q3 2023 peak (14.7% and $30,400), perhaps a result of diminished competitiveness in the most recent quarters as housing supply rebounds.
- Sale amounts and down payments remain higher than before the COVID-19 pandemic. Both climbing mortgage rates and general market dynamics are driving buyers to put more down.
- Down payments on second homes and investment properties, which have typical down payments of 27.9% and 27.3%, respectively, in Q1 2024 are roughly double the typical share of down payments on primary residences. Measured in dollars, down payments for investment and second homes were three and four times larger than for primary homes, respectively, in Q1 2024.
- California markets—home to some of the priciest median homes for sale that require substantial household incomes to purchase with a mortgage—once again topped the list of areas where buyers put down the largest down payments. Buyers in Oxnard-Thousand Oaks-Ventura, CA, put an average of 24.5% down, the largest down payment of any metro in terms of share of the purchase price. In terms of a dollar amount, buyers in the San Jose metro still put the most down, but also saw the largest annual decrease among the 150 largest metros.
- New Hampshire, Washington, DC, and Massachusetts saw the largest down payments as a share of purchase price in Q1 2024. Washington, DC, California, and Washington state saw the largest down payment dollar amounts in Q1 2024.
Down payments climb annually, but are down from peak
In general, at the state, metro, and country level, buyers increased down payments in Q1 2024 over the previous year. However, on a quarterly basis, down payments have fallen since Q3 2023.
It is seasonally typical for down payments to fall between the fourth quarter and the first quarter. In line with this seasonal trend, the typical down payment fell from the data’s peak of 14.7% in Q3 2023, to 13.6% in the first quarter of this year.
Down payments remain well above pre-pandemic levels, but as a share of purchase price and as an absolute dollar amount. Right before the pandemic, in the first quarter of 2020, the typical down payment for a primary home was 10.7% of the purchase price, and the median down payment was roughly $14,000. In Q1 2024, both of these had climbed significantly, with the typical down payment increasing by nearly 3 percentage points and by roughly $12,000, to 13.6% and $26,400.
Though the red-hot pandemic market has simmered over the past two years, buyers continue to pay more as a down payment than was common before COVID-19. This could be for a variety of reasons.
Limited housing supply has heated up buyer competition in many areas, leading buyers to offer more as a down payment, a common pandemic practice intended to help a buyer win in a multiple-bid scenario. Also, mortgage rates have climbed significantly since pre-pandemic, encouraging buyers to minimize their interest payments by putting more down and taking out a smaller loan.
One other important consideration is how the overall unaffordability of the market affects who is buying homes. Facing still-high prices and elevated mortgage rates, many of today’s buyers are likely either high earners or buyers using existing home equity—which remains not far off of recent highs—meaning they have more cash on hand to use as a down payment.
Accumulated savings continue to be a factor even as savings rates are below the historic average
In the three years before the pandemic, the U.S. personal savings rate averaged 6.5%. That means, on an aggregate basis, consumers saved 6.5% of their disposable income. The relatively high personal savings rate during the pandemic—which spiked to over 30% and was above the pre-pandemic norm for 20 months—contributed to a buildup in savings, which in turn fueled consumer spending as well as larger down payments.
The personal savings rate dipped below the pre-pandemic average in late 2021 and continued to fall, reaching as low as 2.7% in June 2022 as the market reached its pandemic peak prices amid climbing mortgage rates. The personal savings rate has since recovered, climbing annually through 2023. However, so far in 2024, it has once again fallen relative to a year prior.
As of March 2024, the personal savings rate was just 3.2%, the lowest level since October 2022, and well below the pre-pandemic norm. The recent fall in the savings rate has taken a toll on excess savings, but at an aggregate level, the nest egg built up during the pandemic has not been fully depleted, thus there is still excess personal savings, likely fueling both overall consumption and home down payment growth.
A lower savings rate over the past two years suggests that buyers would have a harder time saving for a large down payment. However, on average year to date, the typical down payment dollar amount was more than double the pre-pandemic median, and the typical down payment as a share of purchase price was 2.9 percentage points higher. Still-large accumulations of pandemic savings likely help some homebuyers, especially those who also have the benefit of existing home equity, which can boost a down payment.
Mortgage rates restrict both housing supply and housing demand
Mortgage rates fell from the multidecade highs seen in the third quarter of 2023, but they were still in the 6.6% to 7% range through the first quarter of the year. Easing rates encouraged some buyers and sellers to reenter the market, and listing activity picked up annually. However, despite six months of annual inventory growth, the number of homes available for sale was still nearly 40% below pre-pandemic levels in April.
Despite progress, many sellers are still hesitant to sell, which would entail trading in a low-rate mortgage for a new, elevated-rate mortgage. In the first quarter of the year, the average outstanding mortgage rate was 3.78%, roughly 3 percentage points lower than the quarter’s going rate for mortgage originations. Likewise, 26% of consumers in April expect mortgage rates to fall this year, leading some to hold off for lower rates.
Despite still-stifled levels of buyer and seller activity, many markets, especially affordable markets, continue to see buyer competition, fueled by low inventory levels of for-sale housing. Climbing down payments suggest that buyers in these areas might be using large down payments as a means to compete or to reduce the size of their mortgage amid elevated interest rates, or because they have high cash availability after a home sale in a higher-priced area.
Nationwide down payments hit first-quarter peak
At the U.S. level in 2019 and 2020, buyers were paying an average of 10.9% down on primary residences. In 2021, this grew to an average 12.3% down payment; in 2022, buyers paid an average of 13.6% as a down payment. By 2023, down payments softened some, falling to an average of 13.3%, well above pre-pandemic levels, but down from 2022.
However, despite the decrease in the average annual down payment amount, down payments hit a new peak of 14.7% in the third quarter of 2023. Similarly, although the first quarter of 2024 saw lower down payments than recent quarters, compared to the first quarter of 2023, which is a rough adjustment for seasonality, showed an annual increase in down payment as a share of purchase price as well as in terms of a dollar amount.
A larger percentage down on typically higher-priced homes means the buyers paid 87.8% more as a down payment in the first quarter of 2024 ($26,400) compared with Q1 2020 ($14,000). Buyers paid the most as a down payment, both as a dollar amount and as a share of the purchase price, in the third quarter of 2023, exceeding the previous peak in the second quarter of 2022.
Though the first quarter of 2024 was not an overall peak, it was the highest Q1 down payment in terms of percentage down, and second highest (after Q1 2022) in terms of dollar amount. Notably, the first quarter of 2022 exceeded Q1 2024 in terms of dollars down, but due to high sale prices, this was not a peak in terms of percentage down.
| Primary Residence | Avg Down Payment as % of Purchase Price | Med. Down Payment ($ amt) | ||||||
| 2021 Q1 | 2022 Q1 | 2023 Q1 | 2024 Q1 | 2021 Q1 | 2022 Q1 | 2023 Q1 | 2024 Q1 | |
| United States | 11.7% | 13.1% | 13.0% | 13.6% | $19,700 | $27,500 | $24,100 | $26,400 |
Still-competitive Northeast states see climbing down payments
At the state level, the typical down payment increased annually as a percentage of the purchase price in all except for eight states in Q1 2024. The typical down payment as a dollar amount also increased in all but eight states. The increase in payment as a percentage of the price increased the most (3.4 percentage points) from 17.5% to 20.9% in New Hampshire in Q1 2024, followed by Rhode Island (+2.3 pp) and Connecticut (+1.8 pp). These states, most of which are in the Northeast, tend to be high-priced and are more likely to draw buyers with high incomes who are able to compete with a down payment.
The Northeast locales have been especially popular over the past year as buyers look for bang for their buck near New York City, Boston, and other business hubs. Washington is a bit of an outlier geographically, but it is similar in that home prices and down payments are generally high, attracting buyers with access to funds.
States With Largest Down Payment Growth in 2024 (%)
| State | 2023 Q1 | 2024 Q1 | 2024 Change |
| New Hampshire | 17.50% | 20.90% | 3.4 pp |
| Rhode Island | 14.40% | 16.70% | 2.3 pp |
| Connecticut | 13.90% | 15.70% | 1.8 pp |
| New Jersey | 16.30% | 18.00% | 1.7 pp |
| Washington | 15.50% | 17.20% | 1.7 pp |
In terms of the down payment amount, Alaska saw the largest increase in Q1 2024, where the typical down payment increased from $12,200 in Q1 2023 to $19,800 in Q1 2024. Measuring in this way, drivers include both the increase in down payment and the median listing price increase, and the list is split between areas with lower dollar down payments where the percentage change is larger and higher down payments in competitive, high-priced markets.
After Alaska, Rhode Island, Delaware, Maine, and Connecticut saw the largest annual down payment amount increases, falling in line with the Northeast down payment growth trend. Northeast markets have been heavily represented in recent Hottest Housing Market reports, confirming that buyer demand is driving competition and prices higher, resulting in higher down payments.
States With Largest Down Payment Dollar Growth Q1 2023–24
| State Name | 2023 Q1 Avg Down Payment % | 2024 Q1 Avg Down Payment % | YY | 2023 Q1 Median Down Payment $ | 2024 Q1 Median Down Payment $ | YY | $ YY |
| Alaska | 9.10% | 10.40% | 1.30% | 12,174 | 19,814 | 62.8% | $7,640 |
| Rhode Island | 14.40% | 16.70% | 2.30% | 31,852 | 48,675 | 52.8% | $16,823 |
| Delaware | 15.90% | 15.80% | -0.10% | 31,212 | 47,643 | 52.6% | $16,431 |
| Maine | 14.00% | 14.10% | 0.10% | 26,188 | 37,191 | 42.0% | $11,003 |
| Connecticut | 13.90% | 15.70% | 1.80% | 31,115 | 42,741 | 37.4% | $11,626 |
Down payments shrink in pandemic hot spots
In Q1 2024, down payments fell in eight states, including Montana, Wyoming, Oklahoma, and South Carolina. These states, along with Florida, also saw the size ($) of down payments decrease annually. Utah and Delaware saw the percentage down shrink annually but the dollar amount grow, as rising home prices pushed up dollar amounts, while Texas and North Dakota saw the opposite, as falling home prices dominated the trend.
States With Shrinking Down Payments (% or $)
| State Name | % Down 2024 Q1 | YY | $ Down 2024 Q1 | YY | $ YY |
| Montana | 17.6% | -1.4% | $57,583 | -1.1% | -$634 |
| Washington D.C. | 19.0% | -1.2% | $86,333 | -13.3% | -$13,194 |
| Wyoming | 13.1% | -1.2% | $14,400 | -40.2% | -$9,675 |
| Oklahoma | 11.1% | -0.3% | $11,552 | -7.9% | -$989 |
| South Carolina | 13.3% | -0.3% | $18,368 | -4.9% | -$953 |
| Utah | 14.8% | -0.2% | $37,751 | 0.6% | +$234 |
| Florida | 14.3% | -0.1% | $27,809 | -3.0% | -$864 |
| Delaware | 15.8% | -0.1% | $47,643 | 52.6% | +$16,431 |
| Texas | 11.2% | 0.0% | $15,105 | -17.2% | -$3,146 |
| North Dakota | 13.0% | 0.6% | $19,003 | -3.3% | -$658 |
Affordable military market down payments increase
The top three markets where down payment dollar amounts have grown the most are all military towns: Fayetteville, NC, Montgomery, AL, and Huntington-Ashland, WV-KY-OH.
Down payments in these three markets have all more than doubled compared with one year ago, but they remain very low both in terms of dollar amount and the percentage of the purchase price when compared with the rest of the country.
Areas with a high concentration of military buyers tend to have lower down payments because of the utilization of Veterans Affairs loans, which permit buyers to purchase homes with as little as a zero down payment, a significant benefit for members of the military and veterans.
As military personnel consider buying a home, they should keep an eye out for assumable loans, a unique feature of VA loans, which enables the buyer to take on the seller’s existing (likely lower-rate) loan. Realtor.com research finds that these loans are more prevalent in military communities.
| Metro Area | 2024 Q1 Avg Down Payment % | YY | 2024 Q1 Median Down Payment $ | % chg yy | $ chg yy |
| Fayetteville, NC | 6.10% | 0.80% | $3,196 | 145.1% | $1,892 |
| Montgomery, AL | 9.30% | 1.50% | $11,175 | 104.4% | $5,708 |
| Huntington-Ashland, WV-KY-OH | 8.70% | 2.60% | $7,155 | 104.0% | $3,648 |
West Coast buyers put more down
Down payments as a share of the purchase price climbed the most in the California metros of Oxnard-Thousand Oaks-Ventura, Modesto, and Stockton. Down payments climbed 4.7 percentage points from 19.8% to 24.5% in Oxnard. The three California markets, plus the fourth biggest grower, New Haven-Milford, CT, saw larger down payments than the national average, both in terms of dollars down and the percentage down, suggesting that these markets are relatively high-priced and competitive. The fifth fastest-growing metro, Springfield, MO, falls in line with the trend of growing competition in low-price, Midwest metros.
Metro-Level, Fastest-Growing Down Payments (as % of Purchase Price)
| Cbsa Title | 2024 Q1 Avg Down Payment % | YY | 2024 Q1 Median Down Payment $ | % chg yy | $ chg yy |
| Oxnard-Thousand Oaks-Ventura, CA | 24.5% | 4.7% | $168,683 | 41.3% | $49,282 |
| Modesto, CA | 16.0% | 3.9% | $46,639 | 79.6% | $20,667 |
| Stockton, CA | 16.7% | 3.1% | $74,167 | 36.2% | $19,728 |
| New Haven-Milford, CT | 16.0% | 3.0% | $37,040 | 64.5% | $14,521 |
| Springfield, MO | 13.60% | 2.80% | 15,738 | 49.5% | $5,210 |
Texas and Florida metros see falling down payments as inventory climbs
Texas and Florida saw surging demand during the pandemic, which led to low inventory levels and climbing prices. However, since the rise of mortgage rates in mid-2022, demand for homes in these areas dried up, leading to a buildup in inventory.
Some markets, such as Austin (+28.9%), San Antonio (+27.4%), and Denver (+15.2%), along with four others, even saw inventory climb back to, or above, pre-pandemic levels as national inventory continued to suffer.
The softening of the Texas and Florida housing markets means home price growth stalled and buyers likely faced less competition and more options. This impact can be seen in down payment trends as well.
Of the 150 largest U.S. metros, 23 are in Texas or Florida, and 14 of those markets have seen falling down payments as a percentage of the purchase price. Similarly, 15 of these 23 markets saw the amount buyers put down fall annually in Q1.
Topping the list of falling down payments is Palm Bay-Melbourne-Titusville, FL, where the typical buyer put down 15% in Q1 2023, but just 12.9% in Q1 2024. The typical down payment amount fell from $29,000 last year to $17,000 this year in Palm Bay. Ocala and Naples rounded out the top three Florida markets by falling down payments.
Florida Markets With the Biggest Declines
| Cbsa Title | 2024 Q1 Avg Down Payment % | YY | 2024 Q1 Median Down Payment $ | % chg yy | $ chg yy |
| Palm Bay-Melbourne-Titusville, FL | 12.90% | -2.10% | 17,229 | -40.6% | -$11,770 |
| Ocala, FL | 12.40% | -1.80% | 8,259 | -51.3% | -$8,699 |
| Naples-Marco Island, FL | 19.10% | -1.70% | 67,895 | -14.5% | -$11,492 |
Though down payments climbed annually as a percentage of the purchase price in Houston, Dallas, and Austin, the amount buyers put down fell in all three markets. San Antonio saw down payments fall both as a dollar amount and as a share of the purchase price in Q1. The only Texas market that saw down payments climb was El Paso, which falls in line with the trend of climbing down payments in military towns elsewhere.
Texas Market Q1 Down Payments
| Cbsa Title | 2024 Q1 Avg Down Payment % | YY | 2024 Q1 Median Down Payment $ | % chg yy | $ chg yy |
| Beaumont-Port Arthur, TX | 6.20% | -1.40% | 5,006 | -22.4% | -$1,443 |
| Corpus Christi, TX | 6.70% | -1.30% | 5,616 | -17.0% | -$1,152 |
| McAllen-Edinburg-Mission, TX | 6.10% | -0.90% | 5,283 | -11.8% | -$704 |
| San Antonio-New Braunfels, TX | 7.20% | -0.70% | 5,564 | -10.2% | -$631 |
| Killeen-Temple, TX | 5.00% | -0.20% | NA | NA | NA |
| Houston-The Woodlands-Sugar Land, TX | 11.80% | 0.10% | 17,610 | -3.9% | -$717 |
| Austin-Round Rock-Georgetown, TX | 15.00% | 0.20% | 44,839 | -9.2% | -$4,565 |
| Dallas-Fort Worth-Arlington, TX | 12.90% | 0.20% | 27,554 | -6.9% | ($2,032) |
| El Paso, TX | 6.20% | 0.80% | 4,848 | 2.2% | $105 |
More generally, the markets that saw the largest annual decrease in the down payment amount include Ocala, FL, Palm Bay, FL, Huntsville, AL, Lafayette, LA, and Beaumont-Port Arthur, TX. Three of these five markets are in Texas or Florida, and the other two are also affordable Southern markets.
Affordable inventory climbed year over year in April, driven largely by a 41.0% annual increase in homes priced between $200,000 and $350,000 in the South. The increase in affordable inventory in the South likely contributes to falling down payments as well.
Largest down payments in expensive California metros
The top seven metros in terms of down payment amount are all in California. San Jose-Sunnyvale-Santa Clara continues to be the metro with the largest median down payment, despite a nearly $30,000 annual decrease in Q1. Buyers in this market put about $213,000 down and a median 24.0% of the purchase price, up from 22.9% one year prior. These changes highlight falling sale prices in the area as the median amount declined despite an increase in the percentage down.
Oxnard-Thousand Oaks-Ventura, CA, saw the fourth-highest down payments in terms of dollars down, with a median down payment of $169,000, roughly $49,000 more than one year ago. As previously mentioned, the share of the purchase price down also increased in Oxnard, elevating the metro to the largest percentage down of any metro (24.5%) in the first quarter.
These pricey metros tend to see large down payments as both interest rates and interest payments increase with larger loan amounts, incentivizing buyers to put down as much as possible to avoid these costs. Also, these high-priced locales tend to have wealthier, high-earning residents who have the funds to put more down on a home. In addition, these metros attract a higher than typical share of international buyers who are more likely to use cash, which presents a stronger offer in highly competitive markets.
Metros With the Highest Down Payments in Q1 2024
| Cbsa Title | 2024 Q1 Avg Down Payment % | YY | 2024 Q1 Median Down Payment $ | % chg yy | $ chg yy |
| San Jose-Sunnyvale-Santa Clara, CA | 24.00% | 1.10% | 213,267 | -11.9% | -$28,779 |
| Santa Maria-Santa Barbara, CA | 24.10% | -0.30% | 206,033 | 21.7% | $36,688 |
| San Francisco-Oakland-Berkeley, CA | 24.20% | 2.80% | 201,617 | 27.3% | $43,284 |
| Oxnard-Thousand Oaks-Ventura, CA | 24.50% | 4.70% | 168,683 | 41.3% | $49,282 |
| Los Angeles-Long Beach-Anaheim, CA | 21.50% | 2.40% | 149,332 | 30.2% | $34,632 |
| San Diego-Chula Vista-Carlsbad, CA | 20.00% | 2.70% | 128,813 | 25.7% | $26,346 |
| Santa Rosa-Petaluma, CA | 20.50% | -1.60% | 128,467 | 1.3% | $1,642 |
Primary residence down payments lag investment/secondary properties
Primary residence down payments continue to lag investment property and second-home down payments as a percentage of the sale price, but both followed suit and climbed year over year in the first quarter.
On average, investment properties saw down payments of 27.3% in Q1 2024, 0.6 percentage points higher as a percentage of the purchase price than in Q1 2023. Second-home down payments were typically 27.9% in Q1 2024, up 0.7 percentage points from Q1 2023.
Buyers who can afford investment and second-home purchases opted to pay more as a down payment, perhaps due to nonprimary-home purchase requirements and to avoid higher interest payments. The typical down payment in dollars on a second home or investment property was more than three times as large as the typical primary residence down payment in Q1 2024.
Moving forward
Down payments fell as both a share of the purchase price and as a dollar amount in Q1 2024 relative to the Q3 2023 peak, in line with typical seasonal trends. However, both the percentage and amount climbed annually from Q3 2023 through Q1 2024, suggesting down payments might continue to climb and could hit a new peak later in 2024.
With many buyers opting out of the home purchase market altogether, those left are likely better positioned to make a larger down payment, and incentivized to do so by high mortgage rates. After a period of slowing sale price growth, inventory scarcity created buyer competition and sale prices started to rise on an annual basis once again in summer 2023 through the latest data.
As long as housing market competition continues, down payments are likely to remain elevated nationally, but distinct trends might emerge in different markets as local competitiveness varies. Shoppers looking to navigate these trends might find that relatively affordable markets offer the opportunity to achieve homeownership and limit interest payments by using their existing savings to put a larger amount down on a home.
Methodology
Down payment trends analyzed at the national, state, and top-150-metro level through Q1 2024 using Optimal Blue data. Down payment as a share of the sale price is calculated as an average across the data. Down payment as a dollar amount is calculated by taking the median across the data. All comparisons are between the first quarter of the current and previous years unless otherwise stated. International viewership data is from Realtor.com Cross-Market Demand data.
