The typical down payment for homebuyers has dropped to its lowest level since 2021, according to a new report from Realtor.com.
Data from Realtor.com showed the median down payment during the first quarter of 2026 fell to $23,400, a 19% decline from the first quarter of 2025. The report also found Americans are putting down a smaller share of a home’s purchase price. The typical buyer put down 12.8% of the purchase price at the start of 2026, down from 14% a year earlier.
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As a result, homebuyers are paying more in interest and mortgage insurance, increasing the overall cost of homeownership.
The report also found the typical buyer had a lower credit score than a year earlier, another factor lenders use to determine interest rates.
“Down payments are falling as the housing market slowly tilts toward buyers,” said Hannah Jones. “High prices and borrowing costs continue to test affordability, and while conditions are improving, some buyers re-entering the market are doing so through government-backed programs with lower down payment requirements. That tells us the market is broadening, but the path to homeownership remains difficult for many households.”
Realtor.com noted a sharp increase in the typical down payment between 2020 and 2022.
In addition to affordability challenges, access to cash remains a major hurdle for potential homebuyers.
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The report found the median renter holds an estimated $2,600 in liquid assets and that only 15% to 20% of renters could cover a typical down payment using those assets.
