OHA Market Update Series - Sep 4, 2025
National: Most buyers still think they need 20% down to buy a home, but the reality is far less — and at Open House Austin, more than half of our clients purchase with just 0–3% down thanks to flexible loan programs and lender connections. The bottom line: you don’t need to wait years to save up 20% to become a homeowner.
Local: Austin’s fall home and garden tours are back, offering a peek into stunning private landscapes, cutting-edge architecture, and local artist studios. From cowboy pools to glass-walled dining rooms, these events are full of inspiration — will you be going?
Intrigued? Keep reading.
(4 minute read)
National Real Estate Update
Housing Trends, Interest Rates, and Market Forecasts
20% Down? Why That’s One of the Biggest Myths in Homebuying
One of the most common things I hear from buyers — especially first-time buyers — is: “I’ll never be able to save up 20% for a down payment.”
And you know what? That’s because the 20% down rule is more myth than reality.
According to the National Association of Realtors (NAR), the typical down payment for first-time buyers has hovered between 6–9% since 2018 — and it hasn’t hit 10% in over 30 years. Yet, so many people believe they must put down 20% to buy a home. That misunderstanding keeps a lot of would-be buyers sitting on the sidelines.
Why this matters right now
Affordability is already a challenge in today’s market, with prices and interest rates higher than what we saw just a few years ago. A recent Zillow study found that a median-income household would need to earn over $17,000 more per year to comfortably afford a typical home with a 20% down payment. That’s a huge barrier — and completely unnecessary for most buyers.
So, what’s actually typical?
First-time buyers: 6–9% down
Repeat buyers: Often more, thanks to home equity — last year’s average was about 23%
Combined average: Around 15% (per Redfin data)
In other words: unless you’re buying all cash, very few people are putting 20% down these days.
And here’s where it gets even better: our Open House Austin clients are doing even more with less. More than half of them purchase homes with 0–3% down, showing just how many creative financing options are available when you know where to look.
Where the money comes from
NAR’s research shows:
69% of first-time buyers use their own savings
25% rely on family gifts or loans
21% tap into other financial assets (stocks, 401(k)s, even crypto)
7% use inheritance (the highest share ever recorded)
Loan options beyond 20%
While conventional loans remain popular, there are also flexible options like:
FHA loans with as little as 3.5% down
VA loans with 0% down for qualified buyers
USDA loans that also offer 0% down in eligible areas
On top of that, we have lender connections that offer special programs with 0–1% down, plus additional discounts compared to traditional mortgages.
Why this myth sticks around
Here’s the kicker: 97% of agents have had clients who turned to family for financing advice instead of their realtor. That means buyers are hearing outdated or flat-out incorrect info from well-meaning friends and relatives — and missing opportunities to actually buy sooner.
OHA’s HOT TAKE:
If you’re waiting until you have 20% saved, you might be waiting forever. The truth is: most buyers don’t need that much to get into a home. Our clients here at Open House Austin prove it every day — getting into homes with far less down than they thought possible.
Talking with an agent (and a lender) early can help you understand your real options — and sometimes those options are a lot more achievable than you think.
Austin Area Real Estate & Community Update:
Market Trends, Local News, and Neighborhood Insights
Austin’s Fall Home + Garden Tours: Who’s Coming With Me?
Fall in Austin is officially “tour season” — but I’m not talking about ACL or Formula 1. I’m talking about peeking inside the city’s coolest homes, secret gardens, and artist studios. 🍂✨ If you love design, architecture, or just want to daydream about how you’d redo your kitchen/yard/studio space, these upcoming tours are basically a Pinterest board come to life.
Here’s the lineup:
🌿 Austin Landscape Artistry Showcase & Residential Garden Tour
When: October 18 | Tickets: $23.17 (currently $10 off)
Think castle gardens, outdoor fireplaces, and cowboy pools — all designed by Austin’s top landscape architects and horticulturists. You’ll get insider tips, design inspo, and maybe even start planning your next backyard project.
🏡 AIA Austin Homes Tour
When: October 25–27 | Tickets: $16.82 (earlybird)
It’s the 39th annual tour, which basically makes it an Austin tradition. Ten homes across neighborhoods like Barton Hills, Govalle, and Rosewood are showing off everything from glass-walled dining rooms with forest views to 1930s bungalows turned modern masterpieces. Warning: you will want to redo your cabinets after this.
🌸 Garden Conservancy Open Day
When: November 8 | Tickets: $10 per garden (discount for members)
Five private gardens — not normally open to the public — are yours to explore for a day. Expect English garden vibes, limestone pathways, and foodie-approved edible gardens. Basically, it’s HGTV IRL.
🎨 Austin Studio Tour
When: November 8–9 & 15–16 | Tickets: Free!
Over two weekends, artists across Austin invite you into their studios (and sometimes homes!) to see where the magic happens. This year it’s run by Almost Real Things (ART), and you can not only tour but also snag original pieces for your collection.
OHA’S HOT TAKE:
I’m already marking my calendar (and charging my phone for maximum photo-taking). These tours are such a fun way to see how Austinites live, create, and design — and you always leave with ideas you’d never find scrolling online.
So… are you going? Which one has your name written all over it?
Jennifer Carey
Realtor and Agent Success Manager at Open House Austin, real estate investor, and renovation enthusiast with Wimberley Airbnbs. She loves mid-century modern design, hiking Austin with her dogs, yoga and pilates, and has been enjoying gardening at her new home in East Austin🎶✨
