Cover of the Downpayment Expectations and Hurdles to Homeownership report

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.
Line graph: Respondents who said saving for down payment was the most difficult task in the home buying process, 2013 to 2019

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.
Line graph: Sources of downpayment gift or loan from relative or friend, 2000 to 2019

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.
Table: Factors preventing saving for a downpayment by generation

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.
Bar graph: Typical buyer, who is ready to buy, 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.
Bar graph: Clients parents and family members more or less involved in the home buying or selling process 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

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