Americas first-time homebuyers are increasingly paying all cash as median age remains at 40
The American dream of buying a first home is increasingly becoming a middle-aged milestone — and for a record number of buyers, it comes without a mortgage.A record 10% of first-time homebuyers paid entirely in cash over the past year, while the median age of Americans purchasing their first home remained at an all-time high of 40, according to a new report from the National Association of Realtors.And those paying cash are considerably older than their mortgage-dependent counterparts.The typical all-cash first-time buyer is 54 years old, compared with just 38 for those who finance their purchases.The findings paint a striking picture of an increasingly divided housing market, where some Americans are waiting decades to save enough for a down payment while others are relying on inherited wealth to finally get their foot in the door.Among first-time buyers who paid cash, 28% used an inheritance, compared with just 9% of those who financed their homes.“The housing market is beginning to see a generational transfer of wealth.
It’s not yet a tsunami, but it is changing who can buy a first home and when,” said Jessica Lautz, NAR’s deputy chief economist and vice president of research, in a statement.“Because people are living longer, the generation receiving that wealth is no longer young adults.Many are reaching middle age before they can buy their first home.”The association’s 2026 Profile of Home Buyers and Sellers, released Nov.
5, surveyed buyers who purchased their primary residences between July 2025 and June 2026.It found that first-time buyers accounted for just 22% of all home purchases, a slight improvement from last year’s record low of 21% but still barely half the historical norm of 40% seen before the 2008 financial crisis.The median age of first-time buyers has climbed dramatically over the decades.In the 1980s, Americans typically bought their first homes in their late 20s.
By 2010, that age had reached 30.Today, it stands at 40.“...