Home Buying

Median down payment tops $105k for metro Boston home buyers

This Old House looks at what shoppers are shelling out for single-family homes, tags region as 7th most expensive in nation.

The six-figure median payment exceeds the U.S. Census bureau’s 2022 Metro Boston median household income estimate of $104,299. Matt Rourke/Associated Press

By Victor Stefanescu

February 7, 2024

2 minutes to read

Metro Boston home buyers are forking over more than a year’s salary for a down payment on a property.

A Jan. 20 study by This Old House reported that the median down payment on single-family homes here reached $105,300 in November 2023, higher than all but six other metropolitan areas in the United States. The six-figure payment exceeds the U.S. Census Bureau’s 2022 metro Boston median household income estimate of $104,299.

Melvin A. Vieira Jr., a RE/Max Destiny realtor and a former president of the Greater Boston Association of Realtors, said low housing stock is the culprit behind the high costs. Zoning reform may increase the number of homes available, Vieira said, but it’d still take at least two years to bring new housing to the market.

“We are still going to remain in this type of position for some time,” Vieira said. “There is some inventory coming online, but we’re still behind the pace of where we need to be.”

The median down payment in metro Boston was much higher than the Massachusetts and national figures: $91,050 and $63,900, respectively.

Boston’s median down payment also exceeded those in Providence and Hartford, where home buyers put down $67,500 and $52,200, respectively, according to the study.

New York was the only metro east of the Rockies where the median down payment ($109,500) was higher than Boston’s.

High down payments can bog down buyers, especially those who can’t use profits from previous home sales to chip away at the initial cost.

In metro Boston, it takes buyers a median of 12.4 years to save up for a competitive down payment, according to Zillow research updated on Dec. 31. Ten years ago, it took a median of 9.2 years for buyers to save up, the online marketplace reported.

Massachusetts claimed the No. 7 spot for most expensive down payment in the nation.

Vieira said there are ways for buyers to navigate the high costs, such as tapping into their 401(k)s or pooling money together with family members.

“Yes, you would like to be on your own,” Vieira said, “but there’s time to be on your own. There’s also time to start something with somebody else where you can pull money together, where you both can gain wealth at the same time.”

There may be relief for first-time buyers though through down payment assistance programs. MassHousing offers an interest-free deferred payment second-mortgage loan for eligible first-time buyers in some communities that can reach up to $50,000.

Vieira said buyers should go to their trusted real estate agent or mortgage lender for advice.

“A good real estate agent is going to tell you, ‘Listen, you need to go talk to this lender, this lender, and this lender, because they may have different programs that may work for you,’” he said.