The average down payment on a home in 2014 was 14% of the home total, or about $32,141, according to a recent analysis conducted by RealtyTrac of about 1.5 million purchase loans in 386 counties nationwide.
The analysis finds that the average down payment was around 12% in lower-priced markets while the average was around 24% in higher-priced markets.
‘This analysis shows that first-time home buyers have a better shot at buying a home in low-priced markets – not just because of the lower price point but because, on average, buyers are putting down just 12 percent in those markets compared to 24 percent in high-priced markets,’ says Daren Blomquist, vice president at RealtyTrac, in a statement. ‘Meanwhile, the markets where millennials are moving the most have above-average down payment percentages, which will make it tough for millennial renters to convert into first-time home buyers in those markets.
‘There are a few exceptions, however, where the combination of an influx of millennials and relatively low average down payment percentages indicates markets that will see a quicker return of the first-time home buyer,’ Blomquist adds.
The average down payment in the top 25 most expensive markets tracked in the report was $138,547, while the average down payment in the 25 least expensive markets was $8,239. Because home values are higher in those markets known as ‘millennial magnets’ (due to strong demand from millennials in those markets), the average down payment in those markets, $66,174, is nearly twice the national average.
The report also includes a chart showing what the average down payment is in the top 10 markets for first-time home buyers.