U.S. Homebuyers Face Highest Down Payments in Three Decades

American homebuyers are committing more upfront capital than at any point since the 1990s, with average down payments reaching 19% of purchase prices during the 2024-25 period. First-time buyers typically allocate 10%, while repeat purchasers average 23%, according to National Association of Realtors data.

The current benchmark nearly doubles post-2008 crisis levels and significantly exceeds the 12% average observed pre-pandemic. This trajectory reflects both elevated borrowing costs and a buyer pool increasingly composed of equity-rich or financially secure individuals. On a median $433,200 property, 19% translates to approximately $82,300 in immediate liquidity requirements.

Strategic implications emerge for budget planning, as larger down payments influence long-term equity accumulation and monthly payment structures. The 20% threshold remains particularly consequential—crossing it eliminates private mortgage insurance premiums, yielding potential savings exceeding $100,000 over a 30-year mortgage term.