15 Cities Where Homebuyers Make the Biggest Down Payments

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Editor’s Note: This story originally appeared on Inspection Support Network.

Two years into the COVID-19 pandemic, the US housing market remains in the midst of a historic frenzy.

With low interest rates, strong savings and investment returns through most of the pandemic, and millennials reaching prime home buying age, the market has seen a rush of buyers compete for homes and drive prices to record highs. And while interest rate hikes over the rest of 2022 may discourage potential buyers, the United States also faces a housing shortage that is unlikely to be resolved anytime soon.

According to data from mortgage lender Freddie Mac, the United States has a deficit of 3.8 million housing units. And with global supply chains still recovering from pandemic-related disruptions and inflation driving up costs, new housing stock is expected to be more time and more expensive build for the foreseeable future.

Nationally, the percentage of buyers who put more than 20% down payment increased from 43.5% in 2019 to 53.3% in 2020. And these larger down payments are especially common in the markets of more expensive and more competitive housing. In 24 of the 25 markets with the highest median home values ​​in the United States, a majority of homebuyers made down payments above 20%.

The trend toward deals with more money on the mortgage could put homeownership out of reach for younger, low-income buyers. Older and higher-income people are more likely to have larger savings or existing capital to put toward a home loan.

To determine which metros homebuyers have invested the most in a purchase, Inspection Support Network researchers analyzed the latest data from the Federal Financial Institutions Examination Council’s Home Mortgage Disclosure Act. The researchers ranked metropolitan areas based on the percentage of buyers depositing more than 20%. You will find more information about our methodology at the end.

Here are the US metropolitan areas where people are banking the most on their real estate purchases.

15. Providence-Warwick, RI-MA

Providence College
Jon Bilous / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 42.8%
  • Median down payment amount: $60,000
  • Median loan amount: $285,000
  • Median property value: $345,000
  • Median interest rate: 3.250%
  • Median down payment to revenue percentage: 50.5%

14. Salt Lake City, UT

Salt Lake City, UT
Joe Guetzloff / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 43.1%
  • Median down payment amount: $70,000
  • Median loan amount: $325,000
  • Median property value: $395,000
  • Median interest rate: 3.250%
  • Median down payment to revenue percentage: 62.5%

13. Denver-Aurora-Lakewood, CO

Denver, Colorado
edge of reason / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 45.1%
  • Median down payment amount: $80,000
  • Median loan amount: $395,000
  • Median property value: $485,000
  • Median interest rate: 3.125%
  • Median percentage of down payment to income: 65.6%

12. Portland-Vancouver-Hillsboro, OR-WA

Portland skyline
Jon Bilous / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 46.4%
  • Median down payment amount: $80,000
  • Median loan amount: $375,000
  • Median property value: $455,000
  • Median interest rate: 3.125%
  • Median percentage of down payment to income: 67.1%

11. Austin-Round Rock-Georgetown, TX

Austin, TX
Photography Roschetzky / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 46.4%
  • Median down payment amount: $70,000
  • Median loan amount: $295,000
  • Median property value: $375,000
  • Median interest rate: 3.125%
  • Median percentage of down payment to income: 47.6%

10. Seattle-Tacoma-Bellevue, WA

Seattle, Washington
Edmund Lowe Photography / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 47.0%
  • Median down payment amount: $110,000
  • Median loan amount: $475,000
  • Median property value: $605,000
  • Median interest rate: 3.125%
  • Median percentage of down payment to income: 77.4%

9. Sacramento-Roseville-Folsom, CA

Sacramento, California
Ed Gavryush / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 47.8%
  • Median down payment amount: $90,000
  • Median loan amount: $385,000
  • Median property value: $475,000
  • Median interest rate: 3.125%
  • Median percentage of down payment to income: 66.2%

8. Riverside-San Bernardino-Ontario, CA

Riverside, California
MattGush / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 47.9%
  • Median down payment amount: $80,000
  • Median loan amount: $355,000
  • Median property value: $455,000
  • Median interest rate: 3.125%
  • Median down payment to revenue percentage: 60.6%

7. Miami-Fort Lauderdale-Pompano Beach, Florida

Fort Lauderdale, Florida
GagliardiPhotography / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 48.4%
  • Median down payment amount: $60,000
  • Median loan amount: $305,000
  • Median property value: $375,000
  • Median interest rate: 3.250%
  • Median down payment to revenue percentage: 51.0%

6. Boston-Cambridge-Newton, MA-NH

Boston, MA
Roman Babakin / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 48.5%
  • Median down payment amount: $100,000
  • Median loan amount: $425,000
  • Median property value: $545,000
  • Median interest rate: 3.000%
  • Median down payment to revenue percentage: 70.0%

5. New York-Newark-Jersey City, NY-NJ-PA

THONGCHAI.S / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 51.6%
  • Median down payment amount: $100,000
  • Median loan amount: $405,000
  • Median property value: $525,000
  • Median interest rate: 3.125%
  • Median percentage of down payment to income: 66.7%

4. San Diego-Chula Vista-Carlsbad, CA

San Diego cityscape
Sean Pavone / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 53.8%
  • Median down payment amount: $140,000
  • Median loan amount: $515,000
  • Median property value: $675,000
  • Median interest rate: 3.125%
  • Median percentage of down payment to income: 88.0%

3. Los Angeles-Long Beach-Anaheim, CA

Los Angeles
ESB Professional / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 56.2%
  • Median down payment amount: $170,000
  • Median loan amount: $585,000
  • Median property value: $755,000
  • Median interest rate: 3.125%
  • Median down payment to revenue percentage: 96.1%

2. San Francisco-Oakland-Berkeley, CA

San Francisco
Pius Lee / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 60.9%
  • Median down payment amount: $250,000
  • Median loan amount: $725,000
  • Median property value: $995,000
  • Median interest rate: 3.000%
  • Median down payment to revenue percentage: 109.1%

1. San Jose-Sunnyvale-Santa Clara, CA

Traffic San Jose California
Miscellaneous Photographs / Shutterstock.com
  • Percentage of buyers putting more than 20% down: 66.8%
  • Median down payment amount: $290,000
  • Median loan amount: $765,000
  • Median property value: $1,155,000
  • Median interest rate: 2.990%
  • Median down payment to revenue percentage: 120.0%
Working on computer data analysis on a laptop
Gorodenkoff / Shutterstock.com

Methodology

To determine which metros invested the most in their home purchases, Inspection Support Network researchers analyzed the latest data from the Federal Financial Institutions Examination Council. Residential Mortgage Disclosure Act. Only conventional home purchase loans issued in 2020 were considered in the analysis. The researchers ranked metropolitan areas based on the percentage of buyers depositing more than 20%. In the event of a tie, the metro with the highest median down payment amount was ranked higher. To improve relevance, only metropolitan areas with at least 100,000 inhabitants were included. Additionally, metros were grouped into cohorts based on population size: small (100,000 to 349,999), medium (350,000 to 999,999), and large (1,000,000 or more).

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our stories.

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