The year-over-year rise in average down payment size was largest for low-tier homes
The average U.S. home down payment reached an all-time high last fall. The average down payment amount dropped during the housing crisis of the Great Recession (2008-2009), but it has since steadily increased. However, since the onset of the pandemic in early 2020, the average down payment surged, reaching a record high in October 2023.
Home prices play a significant part in down payment sizes, and with the substantial appreciation of the last few years, average down payments have followed suit. Homebuyers’ average down payments were up by 8% year over year in December 2023, according to CoreLogic Public Record data. The average down payment for a U.S. home was 16% in December 2023, equaling an average amount of about $84,000.
Average Down Payment Amounts and Percentages by Sales Price Tiers [1]
Figure 1 shows that the average down payment amount has increased across all price tiers. In December 2023, the average down payment amount for low-tier homes (those priced at less than 75% of the median sales price) was $29,987, up from $27,011 year over year.
![Average down payment amount by high, middle and low price tiers: 2000-2023](https://www-corelogic-com.corelogicstg.wpengine.com/wp-content/uploads/sites/4/2024/03/ADP_2023_1_RSZ-1024x555.jpg)
Similarly, Figure 2 shows the average down payment percentage by sales price tiers. In December 2023, the average down payment percentage for low-tier homes was almost 13% of the sales price.
The average down payment amount for middle-tier homes (those priced between 75% and 125% of the median sales price) was $56,371 in December 2023, up from $53,031 on an annual basis and representing 14% of the sales price.
The average down payment for high-tier homes (those priced at more than 125% of the median sales price) was $143,681 in December, up from $133,340 year over year and accounting for around 21% of the price. Mortgages for high-tier homes are mostly high-balance loans or jumbo loans, which generally require larger down payments.
Year-over-year rises in average down payments were highest for low-tier homes (11%), followed by high-tier homes (8%). By contrast, the year-over-year increase was just 6% for middle-tier homes.
![](https://www-corelogic-com.corelogicstg.wpengine.com/wp-content/uploads/sites/4/2024/03/ADP_2023_2_RSZ-1024x628.jpg)
U.S. Metros With the Highest Down Payments in December 2023
Down payment percentages were highest in San Francisco (29%); followed by San Jose, California (28%); Anaheim, California (27%); Naples, Florida (27%) and New York (26%). Figure 3 shows U.S. metros based on down payment percentages. In general, high-cost areas experienced larger down payments, as buyers in these metros usually have higher incomes, which translates to more buying power. The other potential reason is that the buyers would prefer to reduce monthly mortgage payments to offset the impact of higher rates.
![Average down payment percentage by U.S. metro: December 2023](https://www-corelogic-com.corelogicstg.wpengine.com/wp-content/uploads/sites/4/2024/03/ADP_2023_3_RSZ-1024x669.jpg)
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[1] Sales price tiers are based on the median price of all home sales transactions at a metro level during a given month.