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

Where Down Payments Stand Now

Buying a home today takes more cash up front than at any point in decades. Down payments have kept climbing while borrowing costs have remained high. For homebuyers between July 2024 and June 2025, the average down payment equaled about 19% of the purchase price, according to the National Association of Realtors’ “2025 Profile of Home Buyers and Sellers.”

That’s the highest share in more than 30 years—roughly double what buyers were putting down in the years after the housing crash of 2008–09 and notably higher than the 13% average seen just before the pandemic in 2020.

Down payments have climbed steadily over the past decade—a sign that today’s buyers tend to be better-resourced or equity-rich. Based on recent national home-price data from the Federal Reserve Bank of St. Louis, a 19% down payment works out to roughly $78,000 on the median U.S. home price of $410,800.

How Down Payments Differ for First-Time and Repeat Buyers

Unsurprisingly, first-time and repeat buyers put down very different amounts. While the average down payment across all 2024–25 buyers was 19%, first-time buyers typically put down about 10%, or roughly $41,000 on a median-priced home of $410,800. Repeat buyers, in contrast, averaged 23%, or about $94,000, according to NAR’s data.

That difference makes sense given how buyers fund their purchases. First-time buyers often rely on savings, investments, gifts, or down payment assistance programs, while repeat buyers typically use proceeds from a previous sale. Having built equity over time gives repeat buyers more flexibility and larger cash reserves, which naturally leads to higher down payments.

Why Paying 20% Down Can Save You Thousands

With today’s high home prices and mortgage costs that can stretch a buyer’s future budget, it’s understandable that many first-time buyers struggle to reach a 20% down payment. If you can comfortably afford the monthly mortgage payment with less money down—and the right house comes along—it can still make sense to go ahead and buy.

But waiting until you can put 20% down can ultimately make a big difference in affordability. Hitting that mark lets you avoid private mortgage insurance (PMI), which applies to loans with smaller down payments and can add hundreds of dollars to your monthly bill.

Let’s do the math: Buying a home at the current median price of $410,800 with a 10% down payment would leave a loan balance of about $369,700. Assuming a 1% PMI, that adds roughly $3,700 a year—about $310 a month—on top of your mortgage payment. Over five years, that’s more than $18,000 in extra costs, money that doesn’t build equity but simply insures the loan for your lender.

Smart Ways To Grow Your Down Payment Before You Buy

If you’re working to boost your down payment—maybe even enough to reach that 20% mark and avoid PMI—there are smart ways to make your savings grow while you save. Automating deposits into a separate high-yield savings account can ensure your down payment money keeps increasing, while locking in a competitive certificate of deposit (CD) rate can help your money grow at a guaranteed rate for months or more than a year into the future.

If you’re planning to buy soon, compare today’s best high-yield savings accounts to earn a strong return while keeping your cash accessible. But if you’ll be saving for longer, consider adding a top nationwide CD to lock in a guaranteed rate for a portion of your down payment funds.