Home Buyers Making Largest Down Payments on Record as Prices Surge

The median down payment for homebuyers increased 11.3% year-over-year to $30,434 in Q3 2022, the highest since Realtor.com started tracking data in 2013.

Down payments have grown 118% over the past 4 years as home prices have surged nearly 40% since 2019. The average down payment is now 14.71% of purchase price.

Larger down payments help buyers compete in tight inventory markets and reduce monthly mortgage payments amid high interest rates.

Repeat buyers with equity and higher incomes are making up a larger share of buyers, while first-time buyers are decreasing.

Younger buyers are getting financial help for down payments from family, while lower-income buyers are often priced out of the market.