Down Payments On Homes Across The 50 Largest Metros Average $62,000
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Loading... - Freya Darren
- 28 Oct 2022
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While there are signs that the overheated housing market is finally starting to cool down, home prices are still significantly higher in many parts of the country than before the pandemic. One of the side effects of these higher home prices is higher down payments.
To illustrate high down payments, LendingTree analyzed data from more than 960,000 users of its platform who lived in one of the nation’s 50 largest metros and were offered a 30-year, fixed-rate mortgage from January 1 to October 10.
The online lending marketplace found that home buyers across the nation’s 50 largest metros are putting tens of thousands of dollars, on average, toward their down payments. Even in areas where household incomes and loan amounts are relatively low, five-figure down payments are common.
A down payment on a home across the nation’s 50 largest metros averages $62,611. For comparison, that amount is 35.3% higher than when LendingTree last published this study in September 2021, when the average down payment across the nation’s 50 largest metros was $46,283. While average down payments can vary significantly by location, no metro featured in the study’s 2022 update has an average of less than $38,000.
California is home to the three metros where down payments are highest — San Jose, San Francisco and Los Angeles. The average down payment in San Jose is $142,006. In San Francisco and Los Angeles, those figures are $131,631 and $104,749, respectively. These are the only metros in our study where average down payments top $100,000.
Oklahoma City, St. Louis and Virginia Beach, Virginia are the metros with the lowest down payments. Down payments in these metros average $38,169, $40,113 and $40,530, respectively.
Across the nation’s 50 largest metros, the average down payment on a home equates to 58.3% of that area’s average yearly household income.
Down payments are the most affordable relative to income in Hartford, Connecticut; St. Louis; and Virginia Beach. Across the three metros, home buyers put 43.5% of their area’s average annual household income toward a down payment. Read More…
