Homebuyers are putting less money down than they were a year ago, another sign that increased inventory and greater negotiating room are changing the purchase market.
The typical down payment fell to $27,100 in the second quarter of 2026, the lowest second-quarter dollar amount since 2021, according to Realtor.com's latest Down Payment Report.
That was down 9.2% from a year earlier, when the typical buyer put down $29,900. Buyers put down an average 13.7% of the purchase price in the second quarter, compared with 14.3% a year earlier.
The decline comes as buyers gain more leverage in parts of the country. Realtor.com reported that active listings increased 3.6% from a year earlier in August while median list prices declined 1.3%, giving buyers more time and negotiating room.
For loan originators, that can mean borrowers have more flexibility around how much cash they bring to closing, even as mortgage rates continue to shape how far that money ultimately goes.
"Down payments rose sharply from the winter into spring, as they typically do seasonally, yet the rebound still left them below year-ago levels," Realtor.com Senior Economist Hannah Jones said. "Buyers have gained some negotiating room, while higher mortgage rates remain the biggest factor shaping monthly affordability."
Monthly Payments Remain The Bigger Calculation
The drop in down payments does not necessarily translate into lower monthly housing costs.
In August 2021, the typical buyer put down 12.4% on a median-priced home of $375,000. By August 2026, the down-payment share had increased to 13.8% while the median listing price had risen to $424,500.
But mortgage rates changed the calculation much more dramatically.
Using the prevailing 30-year fixed mortgage rate for each period, Realtor.com estimated monthly principal and interest at $2,376 in August 2026, up 74% from $1,364 five years earlier.
The larger down-payment share provided about $39 per month in payment relief compared with what a buyer would pay using 2021 down-payment habits, according to Realtor.com.
Buyers have gained negotiating leverage as inventory improves, but mortgage rates continue to play an outsized role in what they can ultimately afford.
Down Payments Tell Different Stories By Market
The national numbers also conceal a wide geographic divide.
In several high-cost, competitive markets, buyers are putting down substantially more money than they did five years ago.
Hartford, Connecticut, had the largest shift among the metros highlighted by Realtor.com. The typical down-payment share increased from 11.4% in August 2021 to 20.4% in August 2026.
Realtor.com estimates that the additional money down reduces the current monthly payment by $269 compared with what a buyer would pay using the area's 2021 down-payment share.
Similar patterns appeared in Boston, where the down-payment share increased from 16.8% to 21.7%; New York, from 16.4% to 21.5%; and Seattle, from 15.6% to 19.8%. Realtor.com estimated the larger down payments provided monthly payment cushions ranging from $205 to $253 in those markets.
The pattern reverses in several softer housing markets.
In Austin, the typical down payment declined from 16.7% in 2021 to 13.9% this August. Dallas fell from 13.7% to 11.7%, Phoenix from 14.5% to 12.8%, San Antonio from 9.2% to 6.9%, and Houston from 12.1% to 10.5%.
Smaller down payments added between $37 and $82 to estimated monthly payments compared with what buyers would pay using the markets' 2021 down-payment shares.
Austin provides one of the clearest examples of how the different pieces of affordability can move in opposite directions. Realtor.com found that its typical listing price was 18% below its 2021 level, while the estimated monthly payment was still 33% higher. A smaller down payment added about $82 per month compared with maintaining the 2021 down-payment share.
Those differences make the local market increasingly important to the financing conversation. A borrower in a market with greater seller flexibility may have more options for preserving cash or negotiating concessions, while buyers in more competitive markets may be using additional equity or savings to reduce the amount financed.
Northeast Buyers Put The Most Down
The regional numbers show the same divide.
The Northeast had the highest average down-payment share in the second quarter at 18.1%, followed by the West at 15.2% and Midwest at 14.2%. The South had the lowest average at 11.9%.
All four regions nevertheless recorded year-over-year declines in their average down-payment shares.
Realtor.com said the South and West have experienced greater inventory recovery and softer prices, creating more negotiating room for buyers. The company's Market Clock found that 70% of the largest U.S. housing markets either favored buyers or were moving in a buyer-friendly direction during the second quarter.
That increased leverage creates opportunities even when the monthly-payment calculation remains challenging. Buyers nationally are gaining negotiating power even where sale prices remain relatively firm. That can put more emphasis on the full structure of a transaction, including the purchase price, seller concessions, and financing terms.
For originators, Realtor.com's latest numbers provide another way to frame that conversation. The amount a borrower puts down is only one part of the affordability calculation, and today's more negotiable purchase market can create additional ways to structure a deal around the borrower's available cash and desired monthly payment.
"For many households, the monthly payment, rather than just the cash needed upfront, will determine how much home they can afford," Jones said.
