Southern buyers making smaller down payments than other regions
A new report found buyers in the South made smaller down payments than buyers in other parts of the country during the first quarter of 2026, reflecting lower home prices across many Southern markets even as affordability pressures remain elevated nationwide.
Buyers across the South are still putting down cash to purchase homes, but a new report suggests the rapid rise in down payments may finally be leveling off after several years of intense competition and rising home prices.
The Realtor.com report found the typical U.S. homebuyer put down 14.4% of the purchase price in the first quarter of 2026, equal to an average down payment of about $30,250. Nationally, that figure was mostly flat from a year earlier after years of steady increases.
Southern buyers putting down less
The South continued to stand apart from other regions, with buyers generally making smaller down payments at closing than those in the Northeast and West.
According to Realtor.com:
- Buyers in the South put down a median 13.4%
- The Northeast led the country at 17.8%
- The West averaged 16.5%
- The Midwest came in at 15.6%
Realtor.com said lower home prices across many Southern markets help keep upfront cash needs more manageable, even as affordability pressures remain elevated.
Competition has started easing
The report also points to a broader market shift happening across many Southern states, including Florida, where inventory has improved compared to the ultra-competitive pandemic market.
That changing dynamic may give financed buyers more room to compete without needing oversized cash reserves or aggressive bidding strategies that became common in the years after the pandemic.
Higher rates mean that even with smaller down payments, monthly costs remain a significant hurdle for Southern buyers.
Source: Realtor.com
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