The Typical Down Payment Buyers Are Currently Making—And How Yours Stacks Up

Homebuyers Are Putting Down More Cash Than Ever

Recent trends show that people purchasing homes today are making much larger down payments compared to the years before the pandemic.

Main Points

• In 2024–25, the typical down payment reached 19% of the home's price—the highest level in over 30 years.
• According to the National Association of Realtors, first-time buyers usually put down around 10%, while repeat buyers average 23%.
• Putting down at least 20% allows buyers to avoid private mortgage insurance (PMI), which can mean saving hundreds each month and thousands over the life of the loan.

Current Down Payment Trends

Purchasing a home now requires more upfront cash than at any time in recent decades. Down payments have continued to rise, and borrowing remains expensive. Between July 2024 and June 2025, the average down payment was about 19% of the purchase price, based on data from the National Association of Realtors.

This figure is the highest in more than three decades—almost double the average after the 2008–09 housing crisis, and significantly above the 12% average seen just before the 2020 pandemic.

Over the past ten years, down payments have steadily increased, indicating that today’s buyers are often more financially prepared or have accumulated more equity. For a median-priced U.S. home at $433,200, a 19% down payment equals approximately $82,300.

Why It Matters

Knowing how much others are putting down can help you understand your own position. The size of your down payment can influence your financial situation for years, impacting both your current affordability and the equity you build over time.

Comparing First-Time and Repeat Buyers

There’s a notable gap between what first-time and repeat buyers put down. While the overall average down payment for 2024–25 is 19%, first-time buyers typically put down about 10%—roughly $43,300 on a median-priced home. Repeat buyers, on the other hand, average 23%, or about $99,600.

This difference is understandable given how buyers fund their purchases. First-time buyers often rely on personal savings, investments, gifts, or down payment assistance programs. Repeat buyers usually use proceeds from selling a previous home, giving them more flexibility and larger cash reserves for higher down payments.

The Benefits of a 20% Down Payment

With today’s elevated home prices and mortgage rates, many first-time buyers find it challenging to reach a 20% down payment. If you’re able to comfortably afford the monthly payments with a smaller down payment and find the right property, moving forward can still be a wise choice.

However, waiting until you can put down 20% can have a significant impact on your finances. Reaching this threshold means you can avoid private mortgage insurance (PMI), which is required for smaller down payments and can add hundreds of dollars to your monthly costs.

For example, if you buy a home at the median price of $433,200 with a 10% down payment, you’d borrow about $389,900. With a 1% PMI rate, that’s an extra $3,900 per year—or $325 each month—on top of your mortgage. Over five years, you’d pay more than $19,500 in PMI, which doesn’t help you build equity but simply protects the lender.

Tips for Increasing Your Down Payment

If you’re aiming to boost your down payment—especially to reach the 20% mark and avoid PMI—there are effective ways to grow your savings. Setting up automatic transfers to a dedicated high-yield savings account can help your money accumulate faster. Alternatively, locking in a competitive certificate of deposit (CD) can guarantee your savings grow at a fixed rate over time.

If you plan to buy soon, compare current high-yield savings accounts to maximize your returns while keeping your funds accessible. For longer-term savings, consider adding a top-rated CD to secure a guaranteed rate for your down payment money.