business
First-time homebuyers remain scarce, but a record share of them pay all cash
A record share of first-time homebuyers paid all cash, even as overall first-time buying stays near its record low.
Key points
- 1 in 10 first-time buyers paid all cash, a record high since data collection began in 2003.
- The first-time buyer share remains at a near-record low of 22%, as housing shortages and high prices sideline many.
- 28% of first-time buyers who paid all cash used an inheritance, and 21% used proceeds from an inherited property sale.
Why it matters. The report says a growing divide is emerging between buyers who save independently and those waiting for generational wealth transfers, and that inheritance use is likely to grow in coming years.
A new National Association of Realtors report finds 1 in 10 first-time homebuyers paid all cash, a record high since data collection began in 2003. The share of first-time buyers remains at a near-record low of 22%, and NAR deputy chief economist Jessica Lautz said inheritances are really driving the change. Buyers who paid all cash were older, with a median age of 54 versus 38 for those who financed, and 28% of them used an inheritance.
Latest updates
First-time homebuyers remain scarce, but a record share of them pay all cash
A new report finds generational wealth is widening the divide between homebuyers and those priced out. The median age of first-time buyers also remains at a record high. 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 Justin Sullivan/Getty Images 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 ov.