With home values projected to rise in every major U.S. metro in 2018, a 20% down payment will cost thousands of dollars more, according to Zillow's home value forecasts.

A year from now, the median U.S. home will be worth $6,275 more.

In hot markets such as San Jose, Calif., home values will increase another $35,934, the largest rise in dollar volume of all major cities, followed by Washington, D.C., where prices will cost about $23,651 more next year.

Home prices projected to grow

When looking at year-over-year change, home prices in Las Vegas will face the greatest rate of appreciation, where they will grow 5.9%. Currently, a consumer will need an average of $46,720 for a 20% down payment in Las Vegas, but will need $2,746 more for a down payment there a year from now.

"Sky-high rents and rising home prices are putting first-time buyers in a bit of a Catch-22. Buying now with a low down payment can be riskier, and the offer may not be considered as competitive by the seller. However, a renter who saves for another year to reach a larger down payment may find that the home they love today is outside their budget a year from now," said Svenja Gudell, Zillow's chief economist, in a press release.

"For those considering buying in the next year, getting into the market today may make more financial sense than they think."

Currently, more than half of first-time buyers, or 59%, are putting less than 20% down on a home purchase.

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