Important points
As of June 2026, the median home sales price in the U.S. is $400,894, which is out of reach for many buyers. Down payments can range from 0% to 20%, depending on the loan type and financial situation. Closing costs typically range from 2% to 5% of the home purchase price.
Since the pandemic, buying a home has become increasingly expensive, putting a strain on the economy and leading to a depressed and difficult housing market. The median home sales price in the U.S. is $400,894, a 30% increase in prices from five years ago. The average down payment is 15% ($64,000 in dollars), which is down from last year as buyers are holding onto additional cash.
With affordability becoming a bigger issue, it’s important to know how much it actually costs to buy a home in today’s market. This Redfin article breaks down the total cost of buying a home, from down payment to closing costs and more.
How much money do I need to buy a house?
The biggest upfront cost of buying a home is the down payment, which typically ranges from 0% to 20% of the purchase price. However, there are additional costs to expect, including closing costs (including inspections and appraisals), mortgage insurance (if your down payment is less than 20%), cash reserves, and moving costs.
Here’s how much a typical homebuyer will need to purchase a home in 2026:
Purchase price: $400,894 Average costs Down payment (15%) $60,134 Mortgage insurance $213 Closing costs (5%) $20,044 Inspection and appraisal $800 Cash reserve (2 months of mortgage payments) $4,368 Moving costs $1,000 Total costs $86,559
How much will it cost to buy a home in 2026?
As of June 2026, the national median home sales price was $400,894, up 1.5% from the previous year. However, prices can vary widely depending on location, home type, and neighborhood. For example, the median price in Seattle, WA is $847,661, while the median price in Atlanta, GA is $406,678.
Even though prices have increased slightly, down payment amounts have decreased in many areas in recent months. Down payments decreased primarily in areas where home prices fell, making bidding wars less likely. Keep in mind that the amount of your down payment will vary depending on factors such as where you live and your financial situation.
Another factor that can impact lower down payment costs is local housing market conditions. It’s an expensive buyer’s market in much of the country, meaning there are more homes for sale than buyers looking to buy. For buyers in these areas, such as Nashville, Tennessee and Miami, Florida, homes may stay on the market longer and sellers may be willing to accept lower prices or make concessions.
Although most housing markets are mostly unaffordable, there is often more room for negotiation as it generally favors the buyer. One strategy is to negotiate seller concessions, costs that the seller agrees to cover on the buyer’s behalf to 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 will cost to buy a home. Before you start the home buying process, talk to a local agent and check out Redfin’s data center to gather all the information you need.
What are the initial costs of purchasing a home?
Several upfront costs will determine how much it will cost to purchase a home and what you can realistically afford to pay.
down payment
Typical range: 3% to 20% of the home purchase price.
The down payment is the amount you pay toward the purchase price of the home and is usually the largest upfront cost of purchasing a home.
Let’s say you put a 15% down payment on a home using the current national median home sales price of $400,894.
$400,894 x 15% = $60,134
In this example, your down payment would be $60,134.
mortgage insurance
Average cost: 0.46% to 1.5% of the loan amount per year
If it’s less than 20%, you’ll probably need to pay private mortgage insurance (PMI). PMI protects the lender if you can’t make your mortgage payments, 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 example above, assume you purchase a home for $400,894 with a 15% down payment.
In this example, your monthly PMI cost would be approximately $213.
closing costs
Typical range: 2% to 5% of the home purchase price.
Closing costs are fees and other expenses associated with buying and selling a home. Common closing costs include lender fees, escrow fees, insurance, and taxes.
Using the example above, you would buy a home for $400,894. To get a possible range of closing costs, multiply that number by 2% and 5%.
$400,894 x 2% = $8,017
$400,894 x 5% = $20,044
In this example, closing costs range from $8,017 to $20,044.
Inspection/appraisal fee
Average cost: $300-400 each
Home inspection and appraisal fees are often paid at the time of service, but may be included in closing costs.
cash reserves
Average cost: 2 months of mortgage payment.
Many financial institutions will require you to leave some cash aside after purchasing a home. The amount of the reserve is determined by your lender, but is usually about two months of your mortgage payment.
moving expenses
Typical range: $880 – $2,565*
Moving costs vary depending on the distance traveled and the amount of items to be transported. Long-distance or cross-country moves can cost upwards of $2,500, and in some cases up to $10,000.
*According to a 2026 study by Angi.com
How to reduce the initial cost of purchasing a home
There are several ways to reduce the initial costs of purchasing a home.
Seller Concessions: Negotiate with the seller to pay certain closing costs and other costs. For example, a buyer might negotiate a $4,000 concession with the seller to help pay closing costs. As of 2025, almost half of sellers were giving concessions to buyers. Down Payment Assistance Programs: If you’re a first-time homebuyer, there are many down payment assistance programs that can help you reduce the amount of your down payment. 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 to qualified buyers. Financial gifts: Financial gifts from family and friends can be used for down payments and closing costs.
What are the ongoing costs of owning a home?
You must have a sufficient budget to cover your monthly household expenses, repair funds, and additional charges.
mortgage payment
Typical monthly cost: $2,619*
The amount you pay for a home loan varies greatly depending on the type of loan, loan period (years), interest rate, etc. Your credit score can also affect your interest rate and monthly payments.
*As of June 7, 2026
public works
Average monthly cost: $595*
Homeowners must budget for sewer, water, trash, internet, cable TV, natural gas, and electricity.
*According to a 2026 study by Move.org
Fixed asset tax
Average annual cost: $1,889*
Property taxes vary widely depending on the price of your home, location, and yearly tax changes. Depending on your area, property taxes can be as low as $199 and as high as $10,001.
*Average countywide property taxes paid in 2023, according to Taxfoundation.org
homeowners insurance
Average annual cost: $2,868*
Homeowners insurance is typically paid monthly, but depending on where you live, you may also need additional insurance policies, such as flood or fire insurance.
*Based on 2026 research by Insurify
HOA fees
Average monthly cost: $100 – $1,000
If you purchase a condo or home that is part of a homeowners association (HOA), you will need to budget for HOA dues. These monthly fees are typically used for property maintenance.
maintenance cost
It’s often recommended to budget about 1% to 4% of your home’s price for maintenance, plus an additional amount in your emergency fund. If you bought a home for $400,894, you might want to save about $4,000 in repairs.
Total initial and ongoing costs of owning a home after one year
Average costs Upfront costs $86,559* Mortgage payments (12 months) $31,428 Utilities (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 recurring costs $135,504
*Average initial cost from previous table
†Calculated using average cost per month based on 2024 survey by Census.gov
Frequently asked questions about how much it costs to buy a house
How much house can I buy?
By understanding your monthly debts such as loans, monthly household expenses, savings, and annual income, you can find out how much house you can afford. All of this will help you determine your home buying budget.
Can I buy a house with zero down payment?
Yes, some loans allow you to buy a home with zero down payment. VA and USDA loans allow eligible buyers to purchase a home with no down payment. Although it can be difficult to qualify for these loans, there are many other low down payment loans available.
Can closing costs be lowered?
Yes, in addition to negotiating concessions, there are assistance programs available to cover closing costs for eligible first-time homebuyers. These programs may offer grants, loans, or cover all closing costs. You may also be able to reduce your closing costs by choosing a lender with low or no fees. Your real estate agent or lender can help you decide which option is best for you.
