Key Takeaways
- The average down payment for 2024–25 buyers hit 19%, the highest in more than three decades.
- First-time buyers typically put down about 10%, while repeat buyers averaged 23%, according to the National Association of Realtors.
- If you can manage to put 20% down, it will allow you to skip PMI—potentially saving hundreds each month and thousands over time.
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.
Why This Matters to You
Seeing what other buyers are putting down can help you gauge where you stand. The amount you’re able to put down can shape your budget for years to come, affecting both what you can afford now and how much equity you build later.
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.
