flexiblefullpage - default
Currently Reading

Down Payments Are Shrinking, but Not in These Pricey Metros

billboard - default
House Review

Down Payments Are Shrinking, but Not in These Pricey Metros

The typical down payment is 10% smaller than it was a year ago, but buyers in these costly metros are still dishing out the big bucks for home purchases

March 23, 2023
House stacked on money in front of piggy bank
Image: Andy Dean / stock.adobe.com

The typical U.S. homebuyer made a $42,375 down payment in January, the smallest typical down payment recorded in nearly two years, according to HousingWire. Though January’s typical down payment was still up 30% compared with pre-pandemic levels, it was 35% below the high recorded in June 2022.

Of the 40 metros tracked by Redfin, San Francisco was home to the highest down payment percentage of 25%, followed by Anaheim and San Jose, in California. Meanwhile, Sacramento, Calif., posted the largest year-over-year decline in down payment percentage, posting 12.4% in January 2023 compared with 20% one year prior.

“One silver lining of high mortgage rates and economic turmoil is that they’ve slowed competition,” Sheharyar Bokhari, Redfin’s senior economist, said in a statement. “That means buyers are often able to purchase a home without facing a bidding war and don’t need to fork over a huge portion of their savings for a down payment to grab sellers’ attention. Today’s buyers are also able to save money in other ways: Nearly half of sellers are offering concessions, like helping pay for a mortgage-rate buydown or covering closing costs, to attract buyers.”  

Read more


leaderboard2 - default

Related Stories

Housing Markets

10 Housing Markets With the Highest Rate of Investor Homeownership

Cities with the highest share of investor homeownership are also the places seeing a slowdown in the market due to high costs

Housing Markets

10 Best Housing Markets for Sellers

Cities topping the list are in high demand due to affordability

Housing Markets

10 Luxury Housing Markets Where Prices Continue to Soar

US cities that have a high appeal for retirees see significant price increases

boombox1 -
native1 - default
halfpage2 -

More in Category

Home builders can maximize efficiencies gained through simplification and standardization by automating both on-site and back-office operations 

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.