Dallas home down payments nearly double over four years

As of December 2023, the average down payment was just over $91,000, up from $59,394 in January 2019all-time high in the U.S. in October 2023As of December 2023, the average down payment was $91,121, up from $59,394 in January 2019. The average down payment percentage in the Dallas metro was 16.4%. The data covers six North Texas counties — Collin, Dallas, Denton, Ellis, Hunt, Kaufman, and Rockwall.Nationally, the average down payment for a U.S. home was 16%, equaling roughly $84,000.

An obvious factor in the uptick is increasing home prices. The median price of a Dallas-Fort Worth home sold in 2023 was $395,000, up from $275,000 in 2019, data from the Texas Real Estate Center shows.play a significant part in down payment sizes, and with the substantial appreciation of the last few years, average down payments have followed suit,” writes CoreLogic’s Archana Pradhan.

Down payments in Dallas are also affected by competition in the market, said Sriram Villupuram, a professor at the University of Texas at Arlington’s Department of Finance and Real Estate.Supply is tight relative to demand in Dallas. Inventory hovered around 2.6 months in 2023, according to the Texas Real Estate Center. Six months supply is generally considered stable, Villupuram said.Larger down payment makes a buyer more appealing in a competitive market.

A higher down payment also brings buyers some financial benefits. Mortgage payments can be reduced. Borrowers give lower interest rates to buyers with bigger down payments. This also allows more of a person’s mortgage payment to go towards the loan’s principal rather than its interest, Villupuram said.

“Competition is a big X-factor here for folks,” he said. “Everyone is happy that people are moving in, but we’ve not put in a proportional amount of supply.. Nick is a real estate reporter for the Dallas Morning News. He previously worked as a digital investigative reporter at 11Alive, Atlanta's NBC affiliate. He's produced award-winning state politics coverage and feature reporting at Georgia newspapers. Nick is a graduate of Mercer University in Macon, Georgia.

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