The National Association of Realtors reports that the average down payment for first-time homebuyers in the 50 largest US metro areas has reached $68,000, driven by persistent home price appreciation that has outpaced income growth for over a decade.
Metro Breakdown
Down payment requirements vary dramatically by market, creating a geographic divide in homeownership access.
- San Jose: $173,000 average down payment (20% of $865K median)
- Los Angeles: $142,000 (15% of $945K median)
- New York metro: $118,000 (15% of $785K median)
- Denver: $82,000 (15% of $547K median)
- Most affordable: Memphis $28,000, Cleveland $31,000, Pittsburgh $34,000
How Buyers Are Coping
44% of first-time buyers received financial help from family members, up from 28% a decade ago. Down payment assistance programs cover an average of $12,000 but face funding constraints. Financial advisors note that low-down-payment options (FHA 3.5%, conventional 3%) exist but add costly mortgage insurance that increases monthly payments by $200-$400.
