First-Time Home Buyer Share Inches Up to 22%
RESEARCH AND ANALYSISHOMEOWNERSHIPGENERATIONAL
First-Time Home Buyer Share Inches Up to 22%, Median Age Remains at Record High of 40
National Association of REALTORS®, Media Relations | November 5, 2026
Generational wealth transfer reshapes homebuying as a record 10% of first-time buyers pay all cash
The share of first-time home buyers rose slightly to 22% from last year’s record low of 21%, while the typical age of first-time buyers remained at an all-time high of 40, according to the National Association of REALTORS®’ 2026 Profile of Home Buyers and Sellers. This annual survey of recent home buyers and sellers covers transactions between July 2025 and June 2026 and offers industry professionals, consumers, and policymakers detailed insights into homebuying and selling behavior.
A record 10% of first-time buyers paid all cash, as inheritances and other generational wealth transfers increasingly shape the path to homeownership. Among first-time all-cash buyers, 28% used an inheritance, compared with 9% of first-time buyers who financed.
“Affordability remains the biggest hurdle for first-time buyers,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “The share of first-time buyers is still about half the historical norm of 40% seen before 2008, and those saving on their own continue to face high rent, student debt, and a shortage of homes they can afford.”
“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,” Lautz added. “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.”
First-time Buyers
Median age: 40 years old—matching the all-time high
10% were all-cash buyers—the highest share on record
Median age of all-cash first-time buyers: 54, compared with 38 for those who finance
9% median down payment
Top sources for down payment:
Personal savings (62%)
Financial assets—such as a 401(k), stocks, or cryptocurrency (30%)
Gifts or loans from family and friends (25%)
Inheritance (10%)—the highest share on record
Repeat Buyers
Repeat buyers accounted for 78% of all home purchases
Median age: 62 years old—matching the all-time high
19% median down payment
30% were all-cash buyers
Median household income: $127,000, up from $111,700 last year
“Repeat buyers are driving the housing market. Unlike first-time home buyers, repeat buyers have seen their housing equity grow rapidly over the past decade, enabling them to trade up for larger homes or move into more desirable locations. These are often moves by choice rather than necessity,” Lautz said.
All Buyers
Median age: 58 years old
Down from 59 last year
26% have children under the age of 18 living at home; Up from 24% last year
14% purchased a multigenerational home
4% purchased with non-romantic roommates—an all-time high
14% bought to be closer to friends and family; Up from 6% in 2000
All Sellers
Median time in home before selling: 12 years—an all-time high
Median distance moved: 30 miles
47% purchased a newer home
36% purchased a larger home
Top reason for selling: to move closer to friends and family (22%)
Use of Real Estate Agents
90% of all home buyers used an agent or broker
93% of buyers of previously owned homes relied on an agent or broker
88% of buyers would use their agent again or recommend them to others
92% of sellers used an agent—an all-time high
5% of sales were for-sale-by-owner—matching the all-time low
“Agent use among buyers and sellers is at its highest level in four decades,” Lautz said. “This might seem counterintuitive given consumers have access to more information than ever before. However, all that information can be misleading without proper context. When executing one of the largest financial transactions of most people’s lives, consumers need localized expertise from agents to give buyers and sellers personalized knowledge.”
Methodology
In July 2026, NAR sent a 121-question survey to 228,250 recent home buyers, using a random sample weighted to be representative of sales by geography. The survey was mailed to all recent home buyers in the sample, sent via text message to a subsample of 200,000, and emailed to 50,000 home buyers. The recent home buyers had to have purchased a primary residence home between July 2025 and June 2026. A total of 7,125 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 3.1%. Data gathered in the report is based on primary residence home buyers. According to the REALTORS® Confidence Index, 83% of home buyers were purchasing as primary residences in 2025, accounting for 4,739,000 homes sold that year (among new and existing homes). Using that calculation, the sample at the 95% confidence level has a margin of error of plus or minus 1.16 percentage points. The 2026 edition of NAR’s Profile of Home Buyers and Sellers continues the longest-running series of national housing data evaluating the demographics, preferences and experiences of recent buyers and sellers. Results are representative of owner-occupants and do not include investors or vacation homes.
About the National Association of REALTORS®
The National Association of REALTORS® is involved in all aspects of residential and commercial real estate. The term REALTOR® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
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