Key takeaways
The U.S. median home sale price is $400,894, as of June 2026 – unaffordable for many buyers.
Down payments can range from 0% to 20%, depending on the loan type and your financial situation.
Closing costs are usually 2% – 5% of the home’s purchase price.
Buying a home has become increasingly expensive since the pandemic, straining the economy and leading to a slow and difficult housing market. The U.S. median home sale price sits at $400,894, and prices are 30% higher than they were five years ago. The average down payment is 15% ($64,000 in dollar terms), down since last year as buyers hold onto additional cash.
As affordability becomes a larger issue, it’s important to know how much it really costs to buy a home in today’s market. In this Redfin article, we’ll break down the total cost of buying a home, from your down payment to closing costs, and more.
How much money do you need to buy a house?
The largest upfront cost of buying a home is your down payment, which typically ranges from 0 – 20% of the purchase price. But there are additional costs to expect, such as closing costs (including inspection and appraisal), mortgage insurance (if your down payment is below 20%), cash reserves, and moving expenses.
Here’s how much a typical homebuyer would need to buy a house in 2026.
Purchase price: $400,894
Average cost
Down payment (15%)
$60,134
Mortgage insurance
$213
Closing costs (5%)
$20,044
Inspection and appraisal
$800
Cash reserves (two months of mortgage payments)
$4,368
Moving costs
$1,000
Total cost
$86,559
What does it cost to buy a home in 2026?
As of June 2026, the national median home sale price is $400,894, up 1.5% year-over-year. However, prices can vary dramatically depending on location, home type, and neighborhood. For example, the median price in Seattle, WA, is $847,661, compared to Atlanta, GA, where the median price is $406,678.
Even with slight increases in the price, down payment amounts have decreased in many areas in the last few months. Down payments primarily dropped in areas where home prices fell, and bidding wars were less likely to occur. Keep in mind that your down payment amount will vary depending on your location, financial situation, and more.
Another factor influencing lower down payment costs is an area’s housing market conditions. It’s an expensive buyer’s market in a majority of the country, which means there are more homes for sale than buyers looking to purchase. For buyers in these areas, such as Nashville, TN, and Miami, FL, homes may stay on the market longer, and sellers may be more willing to accept lower prices or offer concessions.
While most housing markets are largely unaffordable, they generally favor buyers, which means there’s often more room for negotiation. One strategy is to negotiate seller concessions – costs the seller agrees to cover on behalf of the buyer to help reduce out-of-pocket expenses. Concessions are written into the home purchase contract and are deducted from the seller’s proceeds at closing.
Understanding your local housing market can help you determine how much it costs to buy a home. Talk with a local agent and check Redfin’s Data Center to gather all the information you need before starting the homebuying process.
What are the upfront costs of buying a house?
Several upfront costs determine how much it costs to buy a home and what you can realistically afford.
Down payment
Typical range: 3% – 20% of the home’s purchase price
A down payment is the deposit you pay toward a home’s purchase price and is usually the biggest upfront cost of buying a home.
Using the current national median home sale price, $400,894, let’s say you put a 15% down payment on the home.
$400,894 x 15% = $60,134
In this example, your down payment would be $60,134.
Mortgage insurance
Average cost: 0.46– 1.5% of your loan amount annually
If you put down less than 20%, you’ll probably have to pay for private mortgage insurance (PMI). PMI protects your lender in case you can’t pay your mortgage, and the cost is added to your monthly mortgage bill.
You can use a mortgage calculator with PMI to get an estimate of your PMI costs. Using the above example, let’s assume you buy a home for $400,894 with a 15% down payment.
In this example, your monthly PMI cost would be about $213.
Closing costs
Typical range: 2% – 5% of the home’s purchase price
Closing costs are the fees and other expenses associated with the purchase and sale of a home. Typical closing costs include lender and escrow fees, insurance, and taxes.
Using our example above, you purchase a home for $400,894. To get the possible range for your closing costs, you’ll multiply that number by 2% and 5%.
$400,894 x 2% = $8,017
$400,894 x 5% = $20,044
In this example, your closing costs could range from $8,017 to $20,044.
Inspection and appraisal fees
Average cost: $300 – $400 each
Home inspection and appraisal fees are often paid at the time of service, but sometimes are included in closing costs.
Cash reserves
Average cost: 2 months’ worth of mortgage payments
Many lenders require you to have some cash reserves left after purchasing a home. Your lender will determine how large your reserves should be, but it’s usually about two months’ worth of mortgage payments.
Moving costs
Typical range: $880 – $2,565*
Moving costs can vary depending on how far you’re moving and how much stuff you’re transporting. Long-distance or cross-country moves will cost more than $2,500 – in some cases up to $10,000.
*According to a 2026 study by Angi.com
How to reduce the upfront costs of buying a house
There are several ways to help reduce the upfront costs of buying a house.
Seller concessions: You negotiate with the seller to pay for certain closing costs or other expenses. For example, a buyer might negotiate $4,000 in seller concessions to help pay for closing costs. As of 2025, nearly half of sellers were giving concessions to buyers.
Down payment assistance programs: If you’re a first-time homebuyer, there are plenty of down payment assistance programs that can help reduce your down payment amount.
Low- or no-down payment loans: FHA loans offer down payments as low as 3.5%, while VA and USDA loans offer 0% down payment loans for qualified buyers.
Monetary gifts: You can use monetary gifts from family and friends toward your down payment or closing costs.
What are the ongoing costs of owning a home?
You’ll need enough in your budget to cover monthly household expenses, funds for repairs, and additional fees.
Mortgage payments
Typical monthly cost: $2,619*
Mortgage payments vary widely depending on the type of loan, loan terms (number of years), and interest rate. Your credit score can also affect your interest rate and monthly payments.
*As of June 7, 2026
Utilities
Average monthly cost: $595*
As a homeowner, you’ll need to factor sewer, water, garbage, internet, cable TV, natural gas, and electricity into your budget.
*According to a 2026 study by Move.org
Property taxes
Average annual cost: $1,889*
Property taxes vary widely depending on the value of your home, location, and tax changes each year. In some areas, property taxes may be as low as $199 or as high as $10,001.
*Average countywide property taxes paid in 2023 according to Taxfoundation.org
Homeowners insurance
Average annual cost: $2,868*
You’ll typically pay homeowners insurance monthly, but depending on where you live, you may also need additional insurance policies like flood insurance or fire insurance.
*According to a 2026 study by Insurify
HOA fees
Average monthly cost: $100 – $1,000
If you’ve purchased a condo or home that belongs to a homeowner’s association (HOA), you’ll need to budget for HOA dues. These monthly fees are generally used for property maintenance.
Maintenance costs
It’s often recommended that you budget around 1% – 4% of your home’s value for maintenance and extra for an emergency fund. If you purchased that $400,894 home, you may want to save around $4,000 for repairs.
Total upfront and ongoing costs of homeownership after 1 year
Average cost
Upfront costs
$86,559*
Mortgage payments (12 months)
$31,428
Utility costs (12 months)
$7,140
Property taxes
$1,889
Insurance costs
$2,868
HOA fees (12 months)
$1,620†
Maintenance costs
$4,000
Total upfront and ongoing costs
$135,504
*Average upfront costs from the previous table
†Calculated using the average cost per month according to a 2024 study by Census.gov
FAQs about how much it costs to buy a house
How much house can I afford?
You can figure out how much house you can afford by understanding your monthly debts, such as loans, monthly household expenses, savings, and yearly income. These can all help you determine your budget for buying a home.
Can I buy a house with zero down?
Yes, some loans allow you to buy a home with zero down payment. VA and USDA loans allow qualified buyers to purchase a home with no down payment. These loans can be difficult to qualify for, but there are plenty of other low-down payment loans available.
Can I lower closing costs?
Yes, in addition to negotiating concessions, there are assistance programs to help cover closing costs for eligible first-time homebuyers. These programs may offer grants, loans, or cover the full amount of closing costs. You may also be able to lower your closing costs by choosing a lender with low or no fees. Your real estate agent or lender can help you determine the best options for you.
