Down payments reached their lowest level in five years during the first three months of 2026. The cash required to buy a home has declined steadily over the past year, landing at a new low that is 19% less than the same period in 2025. After rising sharply from 2020 through 2024, down payments peaked at an average of $32,700, or 15% of a home’s selling price. Earlier benchmarks show much lower levels in 2019, while early 2025 required 14% or $28,900. In 2026, buyers need 12.8% or $23,400. The decline reflects easing competition as inventory increases and prices soften, though affordability remains difficult due to high prices and borrowing costs, with some buyers returning through government-backed programs that require less down payment.
"Down payments hit their lowest level in five years in the first three months of 2026, according to a new report from Realtor.com. The amount of cash buyers need to put down to buy a home has dropped consistently over the last year, reaching a new low that's 19% less than this time in 2025."
"In early 2019, the average down payment was $12,500, which represented 10.7% of the average home price. By early last year, that percentage jumped up to 14% or $28,900-a huge increase considering that this number represents the cash in hand that you'd need to buy a house. This year, a buyer would need to put down 12.8% or $23,400, according to the new homebuying report."
""Down payments are falling as the housing market slowly tilts toward buyers," Hannah Jones, a senior economic research analyst at Realtor.com, said in the report. "High prices and borrowing costs continue to test affordability, and while conditions are improving, some of the buyers reentering the market are doing so via government-backed programs that have lower down-payment requirements.""
Read at Fast Company
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