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The 2020 Downpayment Expectations report looks at US home buyer household perspectives on downpayment expectations, consumer downpayment expectations, and REALTOR® member downpayment expectations. It examines downpayment amounts, assistance, sources of downpayment, factors holding back savings for a downpayment, and other downpayment-related topics.
Median Percent Downpayment
- In 2019, the median downpayment was 12% for all buyers, 6% for first-time buyers, and 16% for repeat buyers.
- In 1989, the median downpayment for all buyers was 20%, 10% for first-time buyers, and 23% for repeat buyers.
Source of Down Payment
- In 2019, 16% of all buyers received a gift or loan from a relative or friend towards the downpayment of their home purchase.
- In 2019, 32% of first-time buyers and 8% of repeat buyers received a gift or loan from a relative or friend towards the downpayment of their home purchase.
Saving for a Down Payment Was the Most Difficult Task in the Buying Process
- In 2019, 13% of all buyers cited that saving for a downpayment was the most difficult task in the home buying process.
- In 2019, 26% of first-time buyers and seven percent of repeat buyers cited that saving for a downpayment was the most difficult task in the home buying process.
Expenses that Delayed Saving for a Down Payment or Saving for a Home Purchase
- Since 2015, student loans have been the most cited expense that delayed saving for a downpayment.
- Credit card debt and car loans were the next most cited expenses that delayed saving for a downpayment.
Percent Down Payment Needed to Purchase a Home Today
- Consumers typically believed that they would need a median of a 20% down payment to purchase a home today.
- 35% of consumers indicated that believed they would need between 16 to 20%for a downpayment, and 21% believed that they would need between 6 to 10% for a downpayment today.
Helped Children or Family Member With Down Payment to Purchase a Home
- 21% of consumers surveyed said they have helped a child or family member with money for a downpayment to purchase a home.
- 24% percent of owners compared to 11% of non-owners said they have helped a child or family member with money for a downpayment.
- Silent Generation (34%) and Older Boomers (31%) consumers were the most likely generations to have helped a child or family member with money for a downpayment.
Received Down Payment Assistance from a Parent or Relative
- 21% of homeowners surveyed said they have received downpayment assistance from a parent or relative.
- Millennial homeowners (24%) were the most likely to have received downpayment assistance from a parent or relative.
Factors Holding Back from Saving for a Down Payment
- 32% of non-homeowners surveyed said that their limited income was a factor holding them back from saving from a downpayment, followed by rising rents (22%) and health and medical costs (16%).
- Millennial non-homeowners (33%) were the most likely to say that student loan debt was a factor holding them back from saving from a downpayment.
- Silent Generation (57%) and Older Boomers (40%) non-homeowners were the most likely generations to say that nothing is holding them back from saving for a downpayment.
Typical Buyer Informed on Down Payments
- 82% of members surveyed said their typical buyers, who are ready to buy, are informed on downpayments.
- 13% of members surveyed said their typical buyers, who are ready to buy, are not informed on downpayments.
Typical Buyer Informed on Closing Costs
- 70% of members surveyed said their typica buyers, who are ready to buy, are informed on closing costs.
- 25% of members surveyed said their typical buyers, who are ready to buy, are not informed on closing costs.
Clients Received Downpayment Assistance from a Parent or Relative When Purchasing a Home
- 65% of members surveyed said that in the last five years they’ve had clients receive downpayment assistance from a parent or relative when purchasing a home.
- 22% of members said their clients did not receive down payment assistance, and 14% didn’t know.
Family Member Financial Help and Influence on Buyer's Decisions on Where to Purchase
- 38% of members surveyed said when a family member helps to financially purchase a home, that this does not have an influence on where the buyer decides to purchase.
- 35% of members said this does have an influence on where the buyer decides to purchase, while 27% don’t know if this has an influence.
Family Member Financial Help and Influence on Buyer's Decisions on What to Purchase
- 50% of members surveyed said when a family member helps to financially purchase a home, that this does have an influence on what the buyer decides to purchase.
- 20% of members said this does not have an influence on what the buyer decides to purchase, while 30% don’t know if this has an influence.
Clients' Parents' and Family Members' Involvement in the Home Buying or Home Selling Process
- 32% of members surveyed said that in the last five years they have seen no change in their clients’ parents and family members involvement in the home buying or home selling process.
- 28% of members said their clients’ parents and family members have been more involved in the last five years.
Buyers Who Brought Family Members With Them To View Homes
- A median of 25% of respondents said that buyers brought family members, who were not purchasing the home, with them to view homes.
- 30% of respondents said that between one to 10% of buyers brought family members, who were not purchasing the home, with them to view homes.
- Only 3% of respondents said that no buyers brought family members with them to view homes.
Buyers Who Consulted Family Members During the Buying Process
- A median of 40% of respondents said that buyers consulted with family members during the buying process, though they would not live in the home.
- Most often, respondents said that between 1 to 10% and 41 to 50% of buyers consulted with family members during the buying process, though they would not live in the home.
- Only 2% of respondents said that no buyers consulted with family members
