Iowa has been named the fifth best state for first-time homebuyers with an average down payment requirement of $23,844.34, according to new research by Moneywise. Iowa has an average Zillow home value of $183,418.
Moneywise ranked the 50 states based on the median price for houses in each respective state as provided by Zillow and the average down payment percentage of 13%, according to the National Association of Realtors.
The overall average down payment for homes across the United States is $43,870.93.
Additional Moneywise rankings include:
- First-time buyers in Hawaii face the highest down payment requirement, with an average of $110,360.38 needed upfront. The median home value in Hawaii is $848,926.
- West Virginia is considered the best state for first-time homebuyers, as it boasts the lowest average down payment requirement of $16,783.39. West Virginia’s average Zillow home value is $129,103.
- Mississippi ranks as the second best state for first-time homebuyers, with an average down payment requirement of $20,517.64. The state’s average Zillow home value is $157,828.
- Arkansas ranks third overall with an average down payment requirement of $22,082.71. The state’s average Zillow home value is $169,867.
- Oklahoma came in fourth place on the list of states with the lowest average down payment requirement of $22,237.41. The average Zillow home value is $171,057.
- California follows closely with an average down payment requirement of $98,904.00. The median home value in California is $760,800.
- Washington takes third place with an average down payment of $77,445.16. The state’s median home value is $595,732.
- Colorado and Massachusetts bottom out the top five worst states for first-time buyers, with average down payment requirements of $72,778.94 and $72,710.56, respectively. In Colorado, the median home value is $559,838, while in Massachusetts, the median home value is $559,312.
Moneywise is a personal finance website that offers a wide range of information and resources to help people make informed decisions about their finances.
