Down Payments in 2026 Are at Their Lowest Point Since 2021

by Christopher Munkel

Down payments are lower right now than they have been at any point since 2021. That is not a projection. It is what the data shows, and it changes the entry math for buyers who have been putting off a purchase because the savings target felt out of reach.

What the Numbers Show

According to Realtor.com, the typical buyer put down about $23,400 in early 2026. That is roughly $5,000 below the prior-year figure, a 19% drop year over year, and the lowest level recorded since 2021.

Chart showing median down payment amounts for U.S. homebuyers from 2021 to early 2026, declining to $23,400

Why Down Payments Are Falling

Two factors are driving the trend. First, less competition among buyers. In a more balanced market, there is less pressure to lead with a large down payment to stand out. Second, more moderate home prices in many markets mean the standard percentage-of-price calculation produces a smaller absolute number.

Neither factor signals market weakness. Both reflect a market that is settling into a more sustainable range after the supply constraints of 2021 and 2022.

Assistance Programs Most Buyers Do Not Use

Down payment assistance adds another layer to this picture. According to Down Payment Resource, more than 2,600 programs are currently active nationally. Sixty-two percent are designed for first-time buyers, but 38% have no first-time requirement. Sixty-two percent are open to buyers earning $100,000 or more.

Chart showing the share of homebuyers who qualified for down payment assistance programs but did not use them

A significant share of recent buyers qualified for at least one program and closed without tapping it. The programs exist. Most buyers simply do not know they are eligible.

Research from Veterans United adds one more source: approximately 59% of parents have provided or plan to provide financial support to help a child buy a home, with most of that support directed toward the down payment.

What This Means for Kansas City Buyers

Christopher Munkel works with buyers across the Kansas City metro at all price points. Understanding the full picture of down payment options, including which assistance programs apply to a specific buyer's income, location, and situation, is part of the initial buyer conversation at Munkel Real Estate Solutions. The number that qualifies someone for a home in this market is often lower than they assumed before running the actual calculation.

Sources: Realtor.com; Down Payment Resource; Veterans United.