The average down payment buyers are making now — and how your money stacks up

Where the first payments stand now

Buying a home today requires more cash upfront than at any time in decades. Down payments continued to rise while borrowing costs remained high. For homebuyers between July 2024 and June 2025, the average down payment equates to about 19% of the purchase price, according to the National Association of Realtors’ 2025 Home Buyers and Sellers Profile.

That’s the highest share in more than 30 years — nearly double what buyers were putting down in the years following the 2008-09 housing crash, and significantly higher than the 13% average seen just before the pandemic in 2020.

Down payments have risen 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 equates to about $78,000 on the median U.S. home price of $410,800.

How down payments differ for first-time and repeat buyers

Not surprisingly, first-time buyers and repeat buyers offer very different amounts. While the average down payment for all buyers in 2024-2025 was 19%, first-time buyers typically pay about 10%, or roughly $41,000 on a median priced home of $410,800. In contrast, repeat buyers averaged 23%, or about $94,000, according to NAR data.

This difference makes sense considering how buyers finance 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. Building 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 future buyer’s budget, it’s understandable that many first-time buyers struggle to come up with a 20% down payment. If you can comfortably afford your monthly mortgage payments with less money — and the right house comes along — it still makes sense to go ahead and buy.

But waiting until you can discount 20% can ultimately make a big difference in affordability. Reaching this mark allows you to 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 PMI of 1%, that adds roughly $3,700 per year — about $310 per month — on top of your mortgage payment. Over five years, that’s over $18,000 in additional costs, money that doesn’t build equity but simply secures the loan for your lender.

Smart ways to increase your down payment before purchasing

If you’re working to boost your down payment, perhaps enough to reach the 20% mark and avoid PMI, there are smart ways to boost your savings while you save. Automating deposits into a separate high-yield savings account can ensure your down payment money continues to grow, while locking in a competitive Certificate of Deposit (CD) rate can help your money grow at a guaranteed rate several months or more than a year into the future.

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