According to a recent Redfin research, the average American homeowner put down $64,000 in March, an estimated 1.5% less than a year earlier. The average homebuyer now contributes 15% of the purchase price, compared to 16.1% a year ago. Due to slower home price increases, an increase in loan options with lower down payments, and less incentive to compete in bidding wars, homebuyers are making smaller down payments.
These conclusions are based on a Redfin examination of county records from forty of the most populated metropolitan areas in the U.S. The most recent month for which data is available is March 2026. Only property transactions for which buyers obtained a mortgage are included in the loan type data and the down payment data below. Due to slower home price increases, an increase in loan options with lower down payments, and less incentive to compete in bidding wars, homebuyers are making smaller down payments.
Three California metro areas had the highest down payment percentages: San Jose, San Francisco, and Anaheim, where the average homebuyer put down roughly 25% of the average purchase price.
Detroit (5%), Las Vegas (6%), and Virginia Beach, VA (2%), had the lowest percentages. Eighteen metro areas saw a decrease in the median down payment %, with Fort Lauderdale, FL, Las Vegas, and Atlanta seeing the largest drops. Miami, Denver, and Tampa, FL, saw the biggest increases.
In monetary terms, Nashville, TN (-27% year-over-year), Atlanta (-25.3%), and Las Vegas (-21.5%) saw the biggest declines in down payments. Approximately 14 metro areas saw increases, with Cleveland (20.5% year-over-year), Detroit (12%), and Baltimore (8.1%) leading the way.
Note: The data in this report is from a Redfin analysis of county records across 40 of the most populous U.S. metropolitan areas. March 2026 is the most recent month for which data is available. Loan type data, along with data below on down payments, is limited to home purchases for which buyers took out a mortgage.
Down Payments Dip But Remain Elevated From Pre-Pandemic Levels
As mentioned, the average percentage down payment has somewhat decreased. As monthly house payments remain expensive and many Americans are concerned about general economic uncertainty, buyers are attempting to save money. While price growth is slowing in several metro areas, home-sale prices are declining in others. This simply implies that purchasers don’t have to put down as much money. Moderating prices reduce cash amounts because down payments are usually computed as a percentage of a home’s buying price.
Due to the buyer-friendly market, homebuyers are under less pressure to reinforce their offers in bidding wars by making sizable down payments. According to Redfin analysts, homebuyers now have more freedom to save up money for future monthly payments, renovations, or moving costs.
According to Redfin brokers in some regions of the nation, buyers are more frugal with their money when housing expenses are as high as they are right now. For example, buyers may save money for future monthly payments or transfer some funds from their “down payment bucket to their closing costs bucket.” Even while down payments have reduced 1.5% annually and from their peak, they are still significantly more than they were before the pandemic.
Due in large part to the sharp rise in home prices since 2019, down payments have practically doubled in value. For several years prior to 2020, the average down payment was 10%, but it increased during the pandemic homebuying craze and has remained somewhat higher ever since.
Overall, due to the buyer-friendly market, homebuyers are under less pressure to reinforce their offers in bidding wars by making sizable down payments. Buyers now have more freedom to save up money for future monthly payments, renovations, or moving costs.
To read the full report, click here.
