Down Payments Gradually Fall to 2021 Levels as Market Shifts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
0mins
Source: Newsfilter
- Decline in Down Payments: The typical down payment fell to $23,400 in Q1 2026, representing a 19% year-over-year decline and marking the lowest level since 2021, indicating reduced competitive pressure and increased buyer negotiation power.
- Market Environment Shift: As inventory rises and prices moderate, the housing market is gradually tilting towards buyers; although high prices and borrowing costs continue to challenge affordability, government-backed loan programs are helping more buyers re-enter the market.
- Changes in Buyer Credit Scores: By early 2026, the typical buyer's FICO score settled at 733, still above pre-pandemic norms, but indicating a shift in market participants, with more buyers relying on FHA and VA loans to meet home purchase needs.
- Regional Differences: The South experienced the largest year-over-year decline in down payments at 1.2 percentage points, while the Northeast remains the most competitive market with a median down payment of $57,600, highlighting significant regional market disparities.
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About NWS
News Corporation is a diversified media and information services company. Its Digital Real Estate Services segment consists of the Company's interest in REA Group and Move. REA Group is a digital media business specializing in property and property-related services on its Websites and mobile apps. Move is a provider of digital real estate services in the United States and primarily operates Realtor.com, a real estate information, advertising and services platform, its referral-based services, online tools and services to do-it-yourself landlords and tenants. Its Dow Jones segment includes Dow Jones, a global provider of news and business information, which distributes its content and data through a variety of media channels. Its Book Publishing segment consists of HarperCollins, a consumer book publisher with operations in 15 countries. Its News Media segment consists of News Corp Australia, News UK and the New York Post and includes The Australian, The Daily Telegraph, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Luxury Down Payment Surge: In 2025, Bay Area luxury homebuyers made a median down payment of 35%, a 6.6 percentage point increase from 2023, indicating a trend of AI workers liquidating equity and investing directly into real estate, significantly enhancing market competitiveness.
- Market Divergence: While luxury markets in Miami, Austin, and New York saw down payments retreat to pre-pandemic levels by 2025, the Bay Area maintained elevated down payment levels, showcasing the unique impact of the AI wealth effect.
- AI Liquidity Fuels Purchases: As AI company employees began converting equity into cash through buybacks and secondary market transactions in 2024, Bay Area luxury down payments remained high compared to other cities, indicating that AI wealth is reshaping the competitive landscape for homebuyers.
- Mid-Market Impact Expands: In the $750,000 to $1.5 million price range, while the median down payment held steady at 20%, the share of buyers putting down over 30% has increased, driven by young AI professionals, intensifying competition for conventional buyers in previously unattainable price points.
See More
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- Market Divergence: While luxury markets in Miami, Austin, and New York retreated to pre-2023 levels by 2025, the Bay Area maintained elevated down payment levels, reflecting a unique influx of wealth driven by AI company employees liquidating equity, creating distinct competitive advantages.
- Impact of AI Liquidity: As AI equity began converting to cash at scale in 2024, Bay Area luxury down payments remained elevated compared to other markets, highlighting how concentrated wealth from the AI sector is altering buyer competitiveness, particularly in the high-end market.
- Increased Mid-Market Competition: In the $750,000 to $1.5 million price range, while the median down payment held steady at 20%, the share of buyers putting down over 30% has risen, as young AI professionals are entering the mid-market with significantly higher cash profiles, intensifying competition for conventional buyers.
See More
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- Legal Standard Challenge: U.S. District Judge Darrin Gayles ruled that Trump's original lawsuit failed to sufficiently allege 'actual malice,' meaning Trump must provide more evidence to support his claims.
- Reputation Damage: Trump's lawsuit alleges that the Rupert Murdoch-owned newspaper tarnished his reputation by describing a birthday card as bearing his signature, despite Trump and his lawyers asserting that the card is fake.
- Media Pressure Campaign: Trump's multiple lawsuits against news organizations are viewed by critics as part of a broader pressure campaign against the media, highlighting the ongoing tension between him and the press.
See More
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- Legal Developments: Following a federal judge's dismissal of Trump's earlier complaint, his lawyers have refiled the lawsuit, asserting that media executives, including Rupert Murdoch, failed to address the accuracy of the reporting, resulting in significant reputational and financial harm to Trump.
- Media Response: Dow Jones continues to defend its reporting, stating it stands by the accuracy and editorial standards of the article, and plans to challenge Trump's lawsuit in court, indicating that tensions between Trump and the media are escalating.
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See More
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- Judge's Ruling: U.S. District Judge Darrin Gayles dismissed Trump's original lawsuit, stating it failed to sufficiently allege 'actual malice,' which requires proof that the media knowingly published false information, thus necessitating a stronger legal argument from Trump.
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- Card Authenticity Dispute: Trump and his lawyers assert that the birthday card mentioned in the article is fake, despite its release by lawmakers investigating Epstein's case, highlighting Trump's intense struggle to maintain his public image.
See More
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- Miami's Dominance: Miami remains the top U.S. destination for international buyers, capturing 10.3% of all international online views, reflecting its strong appeal among global homebuyers, especially high-net-worth individuals.
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