LendingTree: Median Planned Down Payment Up Sharply

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LendingTree, Charlotte, N.C., released an analysis on current down payment trends, finding that the median planned down payment has increased sharply since 2021. Planned down payments now account for larger shares of loan amounts and borrowers’ incomes, too.

The median down payment buyers intended to make hit $45,000 in 2024, up from an inflation-adjusted $37,624 in 2021.

That equals 6.4 months of income for the median household, compared with 5.6 months in 2021.

The median down payment grew from 10% to 15% of the loan amount from 2021 to 2024.

Assuming a typical household savings rate of 5% from income, the average American homebuyer would need 10.7 years to save for a median down payment in 2024. That compares with 9.3 years in 2021.

California is seeing the highest median intended down payment, at $86,250, which would take 10.3 months of income for the typical earner. Massachusetts is next at $85,000, requiring 9.7 months.

West Virginia is the most affordable for down payments, with a median intended down payment of $22,500, requiring 4.4 months of income. Next is Iowa, with a median intended down payment of $28,5000, or 4.5 months of income.

LendingTree researchers analyzed more than 1 million mortgage purchase inquiries submitted on its platform between Aug. 31, 2021 and Dec. 31, 2024.