A record 10% of first-time U.S. homebuyers paid all cash during the year ending in June 2026, according to the National Association of Realtors’ 2026 Profile of Home Buyers and Sellers, released Nov. 5. The share of first-time buyers remained near a historic low at 22% of all buyers, while their median age held at a record 40. The findings suggest that inheritances and transfers of family wealth are becoming an increasingly important route into homeownership for some buyers.
First-time buyers remain far below historical levels
NAR found that first-time buyers accounted for 22% of purchases, up slightly from 21% in the previous survey but well below the historical norm of about 40% before 2008. The median age of a first-time buyer was 40, compared with 62 for repeat buyers. First-time buyers had a median household income of about $100,000, yet many still face high home prices, rents, student debt and the challenge of saving for a down payment. Repeat buyers accounted for 78% of purchases and are more likely to use equity built up in an earlier home.
Cash buyers are older and more likely to have inherited wealth
First-time buyers who paid cash had a median age of 54, compared with 38 among those who financed their purchases. NAR found that 28% of cash buyers used an inheritance, compared with 9% of financed buyers. Across all first-time buyers, 10% used an inheritance toward their down payment, the highest share in the report’s history. Cash purchases can be funded through savings, financial assets, proceeds from inherited property or trusts; they do not necessarily indicate that every buyer has a high income.
The housing-wealth gap is widening
Repeat buyers often have built up home equity that can be used to purchase another property or provide a larger down payment. NAR said repeat buyers represented 78% of the market, had a median household income of about $127,000 and made a median down payment of 19%. First-time buyers made a median down payment of 9%. This means new buyers are competing not only with one another but also with households that already own property and have accumulated wealth. Limited housing supply and high financing costs add to the barriers.
Younger households wait longer to buy
NAR said the share of first-time buyers remains about half the historical norm seen before 2008. Some younger households are living with relatives, accepting gifts or loans, or using retirement accounts and stocks to assemble a down payment. The report also found an increase in purchases by non-romantic roommates, suggesting that some buyers are combining incomes to make homeownership more affordable. Housing supply, rents, mortgage rates and policies affecting affordability will continue to influence when younger households can buy their first home.