Northeast and Midwest See Rising Down Payments While the South Lags, According to Realtor.com®

Delaware leads the nation with a 38.6% rise in median down payments, reaching $49,000, followed by Rhode Island (+32.8%) and Maine (+32.0%)

Homebuyers across the U.S. put down more money than ever in 2024, setting a new record for both down payment size and percentage of purchase price. But a closer look at the data in a new report from Realtor.com® shows a divided market: while down payments soared in the Northeast and Midwest, they declined in several Southern and Western states, reflecting shifting market dynamics.

The latest data shows that in states such as Delaware and Rhode Island, down payments surged by more than 30% annually. In contrast, pandemic-era boom states such as Texas and Florida saw double-digit declines, with down payments falling as much as 16.5% year over year.

“Today's high-rate environment is reshaping the homebuying landscape,” said Hannah Jones, senior economic research analyst, Realtor.com®. “Higher borrowing costs and affordability pressures have led to a market where financially prepared buyers are putting more money down, especially in competitive regions with limited inventory.”

States with Rising and Falling Down Payments

The states where down payments have grown the most are almost all in either the Northeast or the Midwest. The Northeast and Midwest saw the largest increases, with Delaware leading the nation at a 38.6% rise in median down payments, reaching $49,000, followed by Rhode Island at 32.8% and Maine at 32.0%.

“The Midwest and Northeast continue to see intense buyer demand. Both suffer from relatively severe housing supply gaps due to low construction relative to buyer demand, which has driven prices higher and led to more competitive market conditions,” said Jones. “The supply gap improved only slightly in the Midwest in 2024, but continued to grow in the Northeast. Climbing prices and competitive housing conditions are likely to continue in these regions until housing supply and affordability improve.”

Many of the states where down payments have fallen are in the South and West. Only eight of the 50 states saw down payments fall in 2024. Texas and Florida saw the biggest drops, with Texas' median down payment falling 16.5% to $15,350 and Florida's declining 14.1% to $27,566. Several states that boomed during the pandemic, such as Montana (-8.1%), Wyoming (-3.4%), Tennessee (-2.0%), and North Carolina (-0.2%) have experienced a similar softening.

Metros with Rising and Falling Down Payments

The San Diego metro saw the biggest increase in down payments annually in 2024, followed by Cincinnati, New Orleans, Philadelphia, and Akron, Ohio where home prices have generally climbed, which accounts for some of the increase in down payment amounts.

In many of the metros where down payments climbed the most, buyers put down less than the national median of $30,250. Lower down payments allow for more dramatic percent growth, which is one explanation for the number of affordable markets on the list. Also, affordable markets have surged in popularity in today's challenging housing market, resulting in home price growth and increased competition, both of which drive down payments higher.

Metros with Highest Change in Down Payment ($) 2024

Metro 2024 Avg YY 2024 Median % chg Sales Down (percentage Down yy Price yy Payment % pts) Payment $San Diego-Carlsbad, Calif. 21.2% 2.0% $150,407 33.7% 7.2%Cincinnati, Ohio-Ky.-Ind. 13.6% 1.3% $23,517 32.8% 9.4%New Orleans-Metairie, La. 11.4% 1.1% $14,658 32.7% 3.5%Philadelphia et al, Pa.-N.J.-Del.-Md. 16.6% 1.6% $52,406 32.3% 5.2%Akron, Ohio 12.9% 1.3% $17,551 32.1% 6.5%Las Vegas-Henderson-Paradise, NV 13.9% 0.4% $37,525 31.9% 3.1%Cleveland, Ohio 13.2% 1.4% $18,743 30.9% 7.7%Jackson, Miss. 10.5% 0.5% $9,943 30.4% 3.4%Birmingham-Hoover, Ala. 12.2% 1.8% $15,059 29.8% -0.4%New Haven-Milford, Conn. 16.0% 0.4% $46,988 29.2% 9.0%Little Rock et al, Ark. 10.7% 0.1% $11,772 27.3% 5.6%

Almost all of the markets where down payments have fallen the most are in Florida or Texas; Tucson, Ariz. and Memphis, Tenn., are the only metros represented that are not in Texas or Florida.

Cape Coral, Fla., topped the list with a 31.2% decline in down payments in 2024. Buyers in these metros put down between 9.1% and 31.2% less than the previous year in 2024. The decline is due in part to stagnant or falling home prices and generally, these markets saw significant demand during the pandemic, but have since cooled off.

Only 21 of the 100 largest U.S. metros saw falling down payments in 2024. This small share speaks to the still-competitive conditions and still-climbing sale prices in much of the country.

Metros with Declines in Down Payment ($) 2024

Metro 2024 Avg YY 2024 Median % chg Sales Price Down (percentage Down yy yy Payment % pts) Payment $Cape Coral-Fort Myers, Fla. 13.3% -2.7% $21,328 -31.2% -1.2%Jacksonville, Fla. 13.0% -1.6% $20,892 -27.8% 1.5%Deltona-Daytona Beach et al, Fla. 15.6% -1.0% $25,816 -17.4% 0.0%Palm Bay-Melbourne et al, Fla. 13.6% -1.0% $21,137 -17.3% -0.7%Tucson, Ariz. 13.5% -0.8% $21,834 -15.5% 1.7%Memphis, Tenn.-Miss.-Ark. 9.6% -0.9% $8,251 -15.4% -2.4%Austin-Round Rock, Texas 14.7% -0.9% $44,817 -13.0% -2.6%San Antonio-New Braunfels, Texas 7.4% -0.9% $5,388 -10.8% -2.2%Tampa-St. Petersburg et al, Fla. 14.0% -0.9% $30,961 -9.7% 1.3%Lakeland-Winter Haven, Fla. 8.0% -1.2% $6,489 -9.1% -2.1%

Looking Ahead

Down payments are expected to remain elevated in high-demand areas with limited inventory, while markets in the South and West may continue to see softening trends.

“Buyers who can afford higher down payments will likely remain dominant in competitive regions, but affordability concerns may drive more shifts in 2025,” added Jones.

State-level Down Payments 2024

State Name 2024 Avg YY 2024 Median % chg yy Sales Price Down (percentage Down yy Payment % pts) Payment $Alabama 10.6% 0.5% 8,207 4.7% -0.3%Alaska 11.0% -0.2% 20,972 14.8% 3.3%Arizona 14.6% 0.0% 32,839 8.1% 1.1%Arkansas 11.7% 0.5% 12,532 18.7% 7.3%California 18.6% 0.5% 93,633 18.4% 6.8%Colorado 17.5% 0.1% 73,415 11.0% 1.8%Connecticut 16.8% 0.8% 51,369 24.0% 9.8%Delaware 18.5% 2.4% 49,219 38.6% 2.0%District of Columbia 19.7% -1.9% 93,559 -7.5% 3.5%Florida 14.2% -1.0% 27,566 -14.1% 0.8%Georgia 12.0% 0.2% 16,724 7.5% 4.7%Hawaii* 18.0% 2.7% 93,928 69.1%* -6.8%Idaho 19.2% -0.4% 56,166 1.7% 1.6%Illinois 14.4% 0.6% 30,561 15.7% 7.7%Indiana 13.0% 0.6% 17,934 12.3% -0.3%Iowa 16.1% 0.6% 28,721 14.3% 7.3%Kansas 13.1% 1.1% 19,528 26.9% -1.6%Kentucky 13.0% 0.4% 17,390 15.9% 8.7%Louisiana 9.3% 0.4% 6,582 3.1% 2.4%Maine 17.3% 1.9% 42,185 32.0% 6.9%Maryland 12.5% 0.4% 25,309 9.2% 5.4%Massachusetts 18.6% -0.1% 76,969 1.6% 10.3%Michigan 14.0% 0.4% 22,610 15.5% 9.9%Minnesota 15.7% 0.5% 38,231 7.8% 4.8%Mississippi 8.8% -0.1% 6,191 6.5% 11.6%Missouri 12.9% 0.6% 18,176 20.4% 4.3%Montana 18.7% -1.4% 60,703 -8.1% 4.6%Nebraska 14.8% 0.3% 26,651 11.7% 9.6%Nevada 14.7% 0.4% 39,673 27.9% 4.4%New Hampshire 20.7% 1.4% 76,055 21.5% 9.2%New Jersey 19.0% 1.2% 80,105 23.8% 9.8%New Mexico 12.5% 0.5% 17,938 5.8% 20.0%New York 17.5% 0.6% 54,682 16.0% 7.5%North Carolina 14.2% 0.1% 27,646 -0.2% 3.7%North Dakota 14.8% 1.1% 25,292 13.5% 8.9%Ohio 12.5% 0.8% 17,474 27.9% 8.3%Oklahoma 11.9% 0.1% 13,327 2.1% 5.6%Oregon 16.9% 0.0% 55,397 9.0% 3.0%Pennsylvania 14.7% 1.0% 27,991 20.4% 6.2%Rhode Island 17.4% 1.1% 57,952 32.8% 10.5%South Carolina 14.6% 0.4% 21,179 2.1% 1.5%South Dakota 15.4% 0.2% 28,312 -13.0% #N/ATennessee 13.7% -0.5% 23,326 -2.0% 3.8%Texas 11.3% -0.6% 15,350 -16.5% 0.0%Utah 16.0% 0.7% 45,562 12.6% 0.2%Vermont 17.8% 0.1% 51,411 20.7% 7.4%Virginia 13.8% 0.6% 30,810 15.2% 4.8%Washington 18.1% 1.0% 85,362 19.9% 8.2%West Virginia 9.7% 0.7% 7,412 15.2% 15.9%Wisconsin 15.5% 1.0% 33,230 24.0% 9.1%Wyoming 14.7% -0.9% 25,855 -3.4% 2.0%

*Hawaii may have a quality issue so has been excluded from the ranking.

MethodologyDown payment trends analyzed at the national and top 100 metro levels through Q4 of 2024 using Optimal Blue data. Down payment as a share of the sale price is calculated as an average across the data. Down payment as a dollar amount is calculated by taking the median across the data. All comparisons are between 2023 and 2024 unless otherwise stated.

About Realtor.com®Realtor.com® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Mallory Micetich, press@realtor.com

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