First-time homebuyers remain scarce, but a record share of them pay all cash

A "for sale" sign is posted in front of a home on July 09, 2026 in Los Angeles, Calif. A new report finds generational wealth is helping a record share of first-time homebuyers pay with all cash. Justin Sullivan/Getty Images hide caption

The share of first-time homebuyers remains at a near-record low of 22% as a housing shortage and high prices sideline many, according to a new report by the National Association of Realtors. But those who are managing to buy are older and wealthier than in the past, and 1 in 10 paid all cash, a record high since such data was collected starting in 2003.

"Inheritances are really driving this," said Jessica Lautz, deputy chief economist at the NAR.

First-time buyers who paid all-cash were more likely than those who financed a house to use an inheritance (28%) or proceeds from the sale of an inherited property (21%). They were also older.

NAR finds the median age of all first-time buyers remains at 40, a record high. For first-time buyers who financed a purchase it was 38, while for those who paid all-cash it was 54. "They waited a significant period of time for that generational transfer of wealth to come through," Lautz said.

For first-time buyers overall, personal savings was the biggest source of funding for a down payment. But in another shift, more people used assets – like a 401(k), stocks, or cryptocurrency – than financial help from family or friends. Older buyers have had more time to save up, Lautz said, but she thinks there's another factor: "I think it's uncomfortable to ask mom and dad for a gift or loan when you're hitting 40 versus your young 30s."

The share of first time buyers using an inheritance is likely to grow in coming years as boomers reach their 80's and beyond. As the report noted, "there is a growing divide among those who are saving independently and priced out of homeownership, versus those who are waiting on the sidelines but then given a generational transfer of wealth."

"I would say in the first 15 years of my career, I saw virtually zero first-time home buyers paying all cash," said Jason Miller, a broker with Trust Real Estate Company in St. Cloud, Minn.