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.
“Affordability remains the biggest hurdle for first-time buyers,” Lautz said.
“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.”
For buyers without a family fortune to fall back on, scraping together a down payment remains a major challenge.
The affordability crunch is particularly severe in New York City, where a typical household would need nearly 20 years to save for a 20% down payment on a median-priced home, according to a StreetEasy analysis published earlier this year.
And the struggle extends well beyond the Big Apple. Starter homes priced below $300,000 have virtually disappeared in dozens of US housing markets, further squeezing buyers looking for an affordable entry point.
Personal savings were the most common source of down payment funds, used by 62% of first-time buyers. Another 30% tapped financial assets, including retirement accounts, stocks or cryptocurrency, while 25% relied on gifts or loans from family and friends.
A record 10% used an inheritance toward their down payment.
The typical first-time buyer put down 9% of the purchase price, compared with 19% for repeat buyers, who often have years of accumulated home equity to draw upon.
And the divide extends well beyond first-time purchases.
Repeat buyers, who accounted for a whopping 78% of all home sales, had a median age of 62 — also tying a record high.
Nearly one-third of those repeat buyers paid entirely in cash, while their median household income climbed to $127,000, up from $111,700 the previous year.
“Repeat buyers are driving the housing market,” Lautz said. “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.”
The growing affordability squeeze is also changing how Americans approach homeownership.
A record 4% of all buyers purchased homes with roommates who were not romantic partners, while 14% bought multigenerational properties, often to accommodate aging parents or reduce living expenses.
Meanwhile, homeowners are staying put longer than ever, holding onto their properties for a median of 12 years before selling.
For younger Americans hoping to buy their first home, the consequences of waiting could be substantial.
NAR estimates that delaying homeownership by a decade could cost a buyer roughly $150,000 in potential equity gains on a typical starter home.