Iowa Buyers Need Only $10,400 for Down Payment
Iowa offers the lowest entry cost for a standard 5% down payment among top-ranked states, requiring just $10,400.
Iowa leads the list of most affordable states for saving toward a home purchase. A 5% down payment on a median $208,000 home costs $10,400. This figure is roughly one-fourth of the $42,000 required in Hawaii. The study identifies a direct link between state income and housing costs.
Maryland ranks first despite having a higher median home value of $419,900. The state’s higher incomes offset the elevated property prices. This balance allows residents to accumulate savings faster than in lower-income, higher-price regions. The analysis highlights that affordability depends on the ratio of earnings to home values.
Utah ranks 13th in national savings ability
Utah holds the 13th position for ease of saving for a down payment. The state earns the 10th highest income score in the nation. Housing affordability ranks 17th when including property taxes and living costs. The median home value in Utah stands at $489,400 according to the study.
A separate report from the University of Utah notes a different median. It places the median sales price for all home types at $520,000. This figure reflects first-quarter 2026 data. The discrepancy underscores the variation in how median values are calculated across different datasets.
National down payment averages vary by buyer type
The median down payment in the United States was $78,831 at the end of 2025. This amount represents 19% of the $414,900 median sale price. First-time buyers typically put down 10% of the price. Previous homeowners generally contribute 23% of the sale price.
The difference between these two groups is significant. At the median sale price, first-time buyers pay $41,490. Experienced buyers pay $95,427. This gap illustrates how prior ownership experience impacts entry costs. Data from the National Association of Realtors supports these figures.
Hawaii and New York face highest barriers
Hawaii ranks 49th on the list of easiest states for saving. The state has the highest median home value at $839,100. A 5% down payment there requires nearly $42,000. Strong earnings in the state are not enough to offset the high price tag.
New York sits at the bottom of the ranking. California also places below Hawaii in terms of affordability for down payments. Washington, D.C., Oregon, and Nevada complete the bottom five. These regions present the most significant financial hurdles for prospective buyers.
