Down Payment Amounts Decline Annually for the First Time in 2 Years

The typical down payment appears to be dropping as the market shifts in favor of buyers. According to recent data from real estate marketing platform Redfin, the typical U.S. homebuyer’s down payment as of April 2025 is $62,468, which is down by 1% year-over-year. While slight, this is the first time the housing market has seen a year-over-year decline in down payments in two years. However, when looking at down payments in terms of percentages, the typical homebuyer put down 15% of the purchase price in April, compared with 15.1% during the same month last year.

The last time the dollar amount of a typical down payment fell year-over-year was in the summer of 2023, primarily due to declining home prices at that time. While that dynamic is not in play in 2025, home price growth is definitely slowing. In April 2025, home prices grew by 1.4% year-over-year, compared with 4% during the same time last year.

Down payments are falling in dollar terms even though overall home prices are rising slightly because not all homebuyers make a down payment; nearly one-third of buyers pay in all cash.

It’s likely that the people buying homes with a mortgage bought cheaper homes, reducing down payments. That also explains why down payments stayed flat in percentage terms but declined in dollar terms.