Where Down Payments Are Highest and Lowest in the U.S.

When it comes to buying a home, down payments have reached record levels due to high prices and mortgage rates hovering around 7%. In fact, at the end of 2024, the average down payment was nearly 15%, with a median down payment exceeding $30,000.

However, not all housing markets are experiencing such high down payments. In more affordable and less competitive areas like El Paso, Texas, and Augusta, Georgia, buyers are putting down less than $7,500, which is less than 10% of the purchase price. This data comes from Realtor.com, which analyzed down payment trends in 150 U.S. housing markets.

In the fourth quarter of 2024, the average down payment was 14.4% of the purchase price, significantly higher than previous years. The typical down payment in the fourth quarter of 2024 was over $30,000, a 125.5% increase compared to the same period in 2019.

The highest median down payments are found in cities like San Jose, San Francisco, and Los Angeles, all located in California. These areas see down payments well into the six-digit range, often made by high-earning individuals or those capable of making all-cash offers.

On the other hand, the lowest median down payments are in cities like El Paso, San Antonio, and McAllen in Texas, where down payments are as low as 6-7% of the purchase price. These more affordable markets in the South and West are seeing softer down payment amounts compared to their counterparts in California and the East Coast.

As we move into 2025, affordability concerns may drive shifts in down payment trends. While buyers in competitive regions may continue to afford higher down payments, softer markets are likely to see a decrease in down payment amounts.

If you’re in the market for a new home, it’s essential to consider the down payment requirements in your area and how they may impact your buying process. Stay informed on market trends and be prepared for potential changes in down payment expectations as the year progresses.