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Housing

Down Payments Remain Elevated in California Housing Market

Strategic Insights

— 1 min read

As the housing market in California continues to balance elevated costs with moderating demand, down payments have remained relatively flat in the third quarter of 2025, according to the Realtor.com(r) Down Payment Report. The typical down payment in Q3 2025 was $30,400, about $500 higher than Q2 and roughly unchanged from a year earlier. The average down payment share remained near 14.4% of the purchase price, a modest increase compared to the previous period. Historically, down payments tend to pick up steam through the first half of the year, but 2025's gain was more subdued, reflecting a steadier market with stable prices and more measured buyer demand.

Key Takeaways:

  • The median down payment in California increased by $500 in Q3 2025, reaching $30,400, about 117.9% higher than in Q3 2019.
  • The average down payment share remained near 14.4% of the purchase price, a modest increase compared to the previous period.
  • Primary residence buyers continue to dominate the market, with a typical FICO score of 735, roughly 20 points above the national average.
  • The typical homebuyer still favors high-end properties, with sales of homes priced above $750,000 rising nearly 6% from a year ago.
  • Regional patterns highlight uneven market conditions, with the Northeast and Midwest regions seeing higher average down payment percentages and dollar amounts compared to the South and West.
  • Buyers of investment properties and second homes continue to make significantly larger down payments, averaging 26.7% and 26.9% of the purchase price, respectively.
  • Regional differences in down payment shares and dollar amounts reflect broader housing trends, including inventory recovery and supply chain issues.

Statistics:

  • Q3 2025: Typical down payment = $30,400, Average down payment share = 14.4% of purchase price.
  • Q3 2019: Typical down payment = $13,900, Average down payment share = 10.5% of purchase price.
  • Q3 2024: Typical down payment = $30,300, Average down payment share = 14.5% of purchase price.
  • Regional average down payment percentages in Q3 2025: Northeast = 18.2%, West = 16.3%, Midwest = 14.5%, South = 12.5%.
  • Regional median down payments in Q3 2025: Northeast = $62,900, Midwest = $28,000, South = $22,800, West = $51,000.

Sources:

  • Realtor.com(r) Down Payment Report (2025)
  • Realtor.com(r) (Quotes from Danielle Hale and Hannah Jones)
  • National Association of REALTORS (California press release)

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