Median Down Payment by State: 2023 Data and Trends

Median Down Payment by State: What You Need to Know

Buying a home is one of the most significant financial decisions most Americans will make. A key factor in this process is the down payment—the upfront amount paid toward the purchase price of a home. The median down payment varies widely across the United States, influenced by regional home prices, local economic conditions, and buyer demographics. This article explores the latest data on median down payments by state, highlights regional trends, and provides insights into how down payments differ for first-time and repeat buyers.

Median Down Payment by State

The median down payment for a home in the United States is $63,900, according to recent data from Redfin and the National Association of Realtors (NAR). However, this figure masks significant variation across states. Nineteen states and Washington, D.C., have a higher median down payment than the national median, while the rest fall below.

The state with the highest median down payment is Hawaii, where buyers typically put down $134,850. In contrast, Iowa has the lowest median down payment at $33,150, more than four times less than Hawaii. This stark difference reflects the wide range of home prices and cost of living across the country.

Top 10 States with Highest Median Down Payments

• Hawaii: $134,850
• California: $126,000
• Massachusetts: $118,500
• Colorado: $118,544
• New Jersey: $118,500
• Washington: $126,000
• Connecticut: $90,225
• New York: $68,850
• Illinois: $40,000
• Florida: $60,000

Top 10 States with Lowest Median Down Payments

• Iowa: $33,150
• Mississippi: $15,800
• Ohio: $35,250
• Alabama: $37,300
• Arkansas: $29,200
• Kentucky: $34,250
• Louisiana: $21,825
• Maine: $71,300
• Michigan: $33,000
• Missouri: $36,250

Regional Trends in Down Payments

The nine states with the highest median down payments are primarily located in the West and Northeast, reflecting the higher cost of living and home prices in these regions. Conversely, the 10 states with the lowest median down payments are concentrated in the Midwest and South, where homes are generally more affordable.

For example, in the West, states like California, Colorado, and Washington have median down payments well above the national average. In the Northeast, Massachusetts, New Jersey, and Connecticut also rank among the highest. In contrast, states like Iowa, Mississippi, and Ohio have some of the lowest median down payments, making them attractive options for first-time buyers and those seeking affordability.

Down Payments in Major Metro Areas

Median down payments in major metropolitan areas often differ from state averages. The top 10 metros have a median down payment of $138,345, while the median for all 50 metro areas listed is $71,889. The median for the top 10 metros is higher than any state’s median down payment, while the median for all 50 metro areas is higher than all but seven states.

Only five of the metro areas listed have a median down payment lower than their state’s median down payment: Buffalo, New York; Pittsburgh; Cleveland; Detroit; and St. Louis. For example, Buffalo, New York, has a median down payment of $36,750, nearly half the median for New York State ($68,850) and nearly three times less than New York City ($109,500).

What Percent Down Payment Do You Need on a House?

There are various home loans to choose from when buying a house, including conventional loans, loans for unique properties, and loans for rural areas. The down payment for most loans ranges from 3.5% to 20% of the house’s purchase price. Some loans, such as VA loans, don’t require a down payment for qualified buyers.

The median down payment for all home buyers is 15%, according to NAR data. First-time buyers typically put down 8%, while repeat buyers put down 19%. These percentages reflect the different financial situations and risk profiles of first-time and repeat buyers.

Full Data: Median Down Payment by State

The following table shows the median down payment for all states and Washington, D.C., based on November 2023 median home sale values from Redfin and a 15% down payment assumption for all home buyers.

Methodology

To determine the median down payment by state, we utilized November 2023 median home sale values sourced from Redfin for single-family homes. We assumed a 15% down payment for all home buyers, based on data from the National Association of Realtors. For first-time homebuyers, we assumed an 8% down payment, while repeat homebuyers were assumed to make a 19% down payment. The same methodology was applied to calculate median down payments for metropolitan areas, assuming a 15% down payment across the board.

Frequently Asked Questions (FAQs)

Q: What is the average down payment on a house in the U.S.?

A: The median down payment for a house in the U.S. is $63,900, or 15% of the median home price.

Q: Which state has the highest median down payment?

A: Hawaii has the highest median down payment at $134,850.

Q: Which state has the lowest median down payment?

A: Iowa has the lowest median down payment at $33,150.

Q: How do down payments differ for first-time and repeat buyers?

A: First-time buyers typically put down 8%, while repeat buyers put down 19%.

Q: What factors influence the median down payment by state?

A: Factors include regional home prices, cost of living, and local economic conditions.