The Real Deal New York

Average NYC down payments hit nearly $350K: report

National average is only $32K
March 17, 2015 01:10PM

New Yorkers’ down payments on their homes are about ten times the national average, according to a new report from RealtyTrac.

Home prices in New York far exceed the national average of course, but New Yorkers are also paying a higher percentage of the total purchase price upfront. While the national average down payment is $31,723, or just 14 percent of the total purchase price, the average down payment for the New York and New Jersey markets is $347,614, or 37 percent of an average home price of $935,000. In Brooklyn, buyers paid $163,537, or 28 percent, on an average home price of $580,000.

Overall, the average down payment for the nation’s top 25 housing markets — a list that includes New York — is $138,547, or 24 percent of the total purchase price, according to the report, cited by the New York Daily News.

The report shows that efforts by lending giants Fannie Mae and Freddie Mac to spur millennials to buy homes with low-down-payment mortgage programs are not making much of a difference in the most competitive housing markets, which is where many millennials live. Low-down-payment loans, which can be offered for purchases with down payments as little as 3 percent, only accounted for 7 percent of home purchases in the top 25 housing markets, according to RealtyTrac.

The best cities for millennials looking to buy with a low down payment are Philadelphia, Nashville, Des Moines, Little Rock, and Columbus, according to the report. [NYDN] — Tess Hofmann

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  • Charles Dale

    I looked up the median income for New York City for individuals and it states it is $51,100 a year and I keep reading stories how most Americans have hardly any savings and could not even afford a $10,000 emergency so where is all this money coming from in this article? Average New York City downpayment is $350,000??? That is just for the down payment. Then you have a mortgage, property taxes, electric bill, water bill, etc. etc. Where is all this money coming from? Does not make sense to me. I live in New York and have all my life. Most of my neighbors that I talk to don’t have anywhere near this typeof money.

    • Agreed! I live in Manhattan and betcha if I asked the next 50 people who walk into the local Starbucks most (if any) would have this $351K liquid cash for a down payment. Unless of course its the Starbucks on Madison Avenue.

      • Charles Dale

        True, even if we were not talking about liquid cash, many people could not come up with $350,000 unless they had a house, condo or co-op worth that much that they could sell. The people in this article must have a lot of money because even if someone had $350,000 in cash, they would not spend all their money on a down payment so you are talking BIG bucks here. Like I asked before, where is all this money coming from?