How much does it cost to buy a house?

Key Takeaways

• The average sales price of a home in the US is $400,894, as of June 2026 – unaffordable for many buyers.
• Deposits can range from 0% to 20%depending on the loan type and your financial situation.
• Closing costs are usually 2% – 5% of the purchase price of the home.

Buying a home has become increasingly expensive since the pandemic, putting pressure on the economy and slow and difficult housing market. The average sales price of a home in the US is $400,894, and prices are 30% higher than five years ago. The average down payment is 15% ($64,000 in dollars), down from last year as buyers held on to extra cash.

With affordability becoming an increasing issue, it’s important to know how much it really costs to buy a home in today’s market. In this Redfin article, we 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 payments, which typically range from 0 to 20% of the purchase price. But there are additional costs you can expect, such as closing costs (including inspection and appraisal), mortgage insurance (if your down payment is less than 20%), cash reserves, and moving costs.

Here’s how much a typical home buyer would 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 assessment	$800
Cash reserves (two months of mortgage payments)	$4,368
Moving costs	$1,000
Total costs	$86,559

What will it cost to buy a house in 2026?

As of June 2026, the national average home sales price amounts to $400,894, up 1.5% year over year. However, prices can vary dramatically depending on location, home type and neighborhood. For example, enter the average price Seattle, Washingtonis $847,661, compared to Atlanta, Georgiawith the average price being $406,678.

Even with slight price increases, deposit amounts have fallen in many areas in recent months. Down payments fell mainly in areas where home prices fell and bidding wars were less likely. Please note that the amount of your deposit varies depending on your location, financial situation and more.

Another factor that influences lower down payment costs is the housing market conditions in an area. It’s an expensive buyer’s market in a majority of the countrymeaning there are more homes for sale than buyers looking to purchase. For buyers in these areas, such as Nashville, TNAnd Miami, FLHomes may stay on the market longer and sellers may be more willing to accept lower prices or make concessions.

While most housing markets are largely unaffordablethey generally prefer buyers, which means there is often more room for negotiation. One strategy is negotiation concessions from the seller – costs that the seller is willing to cover on behalf of the buyer to help reduce out-of-pocket expenses. Concessions are included in 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 to a local agent and check Redfin’s data center to gather all the information you need before starting the home buying process.

What are the start-up costs when buying a house?

Various upfront costs determine how much it costs to buy a home and what you can realistically afford.

Deposit

Typical range: 3% – 20% of the purchase price of the home

A deposit is the down payment you pay toward the purchase price of a home and is usually the largest upfront cost of purchasing a home.

Using the current national average home sales price of $400,894, let’s say you put a 15% down payment on the house.

€400,894 x 15% = €60,134

In this example, your down payment would be $60,134.

Mortgage insurance

Average costs: 0.46 – 1.5% of your loan amount annually

If you put down less than 20%, you will probably have to pay private mortgage insurance (PMI). PMI protects your lender if you can’t pay your mortgage, and the cost is added to your monthly mortgage bill.

You can use one mortgage calculator with PMI to get an estimate of your PMI costs. Using the example above, let’s assume you buy a house for $400,894 with a 15% down payment.

In this example, your monthly PMI cost is approximately $213.

Closing costs

Typical range: 2% – 5% of the purchase price of the home

Closing costs Are the fees and other costs 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 buy a house for $400,894. To get the possible range for your closing costs, 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 costs

Average costs: $300 – $400 each

Home inspection and appraisal fees are often paid at the time of service, but are sometimes included in closing costs.

Cash reserves

Average costs: 2 months mortgage costs

Many lenders require that you have some cash reserves left over after purchasing a home. Your lender will determine how large your reserves should be, but this is 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 trips across the country will cost more than $2,500 – in some cases up to $10,000.

*According to a 2026 survey by Angi.com

How to reduce the upfront costs of buying a home

There are several ways to reduce the initial costs of purchasing a home.

• Seller concessions: You negotiate with the seller to pay certain closing costs or other expenses. For example, a buyer can negotiate $4,000 in seller concessions to help pay closing costs. From 2025 almost half of sellers gave concessions to buyers.
• Down Payment Tools: If you are a first time home buyer, there are plenty down payment tools which can help you 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 donations: 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 need enough budget to cover monthly household expenses, money for repairs and additional costs.

Mortgage payments

Typical monthly costs: $2,619*

Mortgage payments vary widely depending on the type of loan, the loan terms (number of years), and the interest rate. Your credit score can also affect your interest rate and monthly payments.

*From June 7, 2026

Utilities

Average monthly costs: $595*

As a homeowner, you need to factor sewer, water, trash, internet, cable TV, natural gas and electricity into your budget.

*According to a 2026 survey by Move.org

Property taxes

Average annual costs: $1,889*

Property taxes vary widely depending on your home’s value, location, and annual tax changes. In some areas, property taxes can be as low as $199 or as high as $10,001.

*Average national property taxes paid in 2023 according to Taxfoundation.org

Homeowners Insurance

Average annual costs: $2,868*

You would normally pay for homeowners insurance on a monthly basis, but depending on where you live, you may also need additional insurance such as flood insurance or fire insurance.

*According to a 2026 survey by Insurify

HOA fees

Average monthly costs: $100 – $1,000

If you have purchased an apartment or house belonging to a Owners Association (VvE)you must reserve a budget for the homeowners’ association membership fee. These monthly fees are typically used for the maintenance of the property.

Maintenance costs

It is often recommended to budget about 1% – 4% of your home’s value for maintenance and extra for an emergency fund. If you bought that $400,894 house, you might want to save about $4,000 for repairs.

Total start-up costs and ongoing costs of homeownership after 1 year

	Average costs
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 costs (12 months)	$1,620†
Maintenance costs	$4,000
Total initial and ongoing costs	$135,504

*Average upfront costs from the previous table

†Calculated based on the average costs per month according to a 2024 study by Census.gov

Frequently asked questions about how much it costs to buy a house

How much house can I afford?

You can find out how much house you can afford by understanding your monthly debts, such as loans, monthly household expenses, savings and annual income. These can all help you determine your home buying budget.

Can I buy a house without paying down?

Yes, this is possible with some loans buy a house without a down payment. VA and USDA loans allow qualified buyers to purchase a home with no down payment. It can be difficult to qualify for these loans, but there are plenty of other low down payment loans available.

Can I reduce 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 or 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.