Buying a Home

First-Time Buyers Are Still 40, and a Record 10% Paid Cash: NAR’s 2026 Profile

NAR's 2026 Profile of Home Buyers and Sellers shows first-time buyers at 22% of sales, a median age of 40 and a record share paying all cash.

By Shivam Kaushik · Updated November 7, 2026 · 4 min read

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Quick answers

First-time buyers made up 22% of home purchases in NAR’s 2026 Profile, up from a record-low 21% last year.
The typical first-time buyer is still 40 years old, tied for the oldest ever.
A record 10% of first-time buyers paid all cash, and a record 10% used an inheritance toward the down payment.
The median first-time buyer put down 9%. Repeat buyers put down 19%.

Picture the “typical” first-time homebuyer. You’re probably thinking of a couple in their late 20s, a starter house, maybe a dog. The real picture in 2026 looks a lot different.

The National Association of Realtors (NAR) released its 2026 Profile of Home Buyers and Sellers on November 5. It covers people who bought a home to live in between July 2025 and June 2026. Here’s what it found, and what it means if you’re trying to buy your first place.

The headline numbers

Measure	First-time buyers	Repeat buyers
Share of purchases	22%	78%
Median age	40	62
Median down payment	9%	19%
Paid all cash	10% (record)	30%

Across all buyers, the median age was 58. Sellers had owned their homes for a median of 12 years before selling, the longest ever recorded. That’s a big reason fewer homes come up for sale: people are staying put.

NAR’s deputy chief economist Jessica Lautz said affordability is still the biggest hurdle for first-time buyers, and that repeat buyers, often with years of built-up equity, are the ones driving the market.

Where first-time buyers got their down payment

Buyers could pick more than one source, so these add up to more than 100%:

Personal savings: 62%
Selling stocks, 401(k) or crypto: 30%
Gift or loan from family or friends: 25%
Inheritance: 10%, the highest on record

NAR described this as the start of a generational transfer of wealth. Among first-time buyers who paid all cash, 28% used an inheritance. The median all-cash first-time buyer was 54, compared with 38 for first-timers who got a mortgage.

Myth buster“You need 20% down to buy your first home.” Most first-time buyers don’t. The median first-timer put down 9%. Conventional loans can go as low as 3% down, and FHA loans as low as 3.5%. Putting down less than 20% usually means paying mortgage insurance, but it can get you in the door years sooner. See what PMI is and how to get rid of it.

What 9% down vs. 20% down looks like

Example

A $400,000 home at this week’s Freddie Mac average of 7.18% (30-year fixed, principal and interest only):

9% down ($36,000): loan of $364,000, about $2,466/month, plus mortgage insurance
20% down ($80,000): loan of $320,000, about $2,168/month, no PMI

The bigger down payment saves about $298 a month in principal and interest. But saving the extra $44,000 could take years. That’s the real trade-off first-time buyers face.

Try your own numbers with the mortgage calculator and the home affordability calculator.

Why the first-time buyer age keeps climbing

NAR has tracked first-time buyers since 1981, when the median first-timer was 29. Now it’s 40. The report points to the usual suspects: high home prices, mortgage rates averaging above 6% during the survey period, and not many homes for sale because owners are staying longer.

Lifestyle changes show up too. NAR found 14% of buyers bought a multigenerational home, and a record 4% bought with a roommate who isn’t a romantic partner. People are getting creative to make the math work.

Fun factNAR’s survey went to 228,250 recent buyers and got 7,125 usable responses. It only counts people buying a home to live in, so investors and vacation-home buyers aren’t in these numbers.

What this means for you

Don’t wait for a perfect 20%. Compare a smaller down payment plus PMI against years of rent. Our rent vs. buy calculator helps.
Look for help. Many states and cities offer down payment assistance for first-time buyers.
Family gifts are allowed, but lenders have rules about documenting them. Read our guide to using gift funds for a down payment.
Know your loan options. Compare FHA requirements with conventional loan requirements.
Start with the checklist. Our first-time home buyer checklist covers the steps in order.

What to watch next

November 10: October inflation (CPI) report, a big driver of mortgage rates.
Thursdays: Freddie Mac’s weekly mortgage rate survey.
Late November: NAR’s October existing-home sales report.

FAQ

What is the average age of a first-time home buyer in 2026?

The median age was 40 in NAR’s 2026 Profile of Home Buyers and Sellers, tied with last year for the highest on record.

What percentage of home buyers are first-time buyers?

22% in the 2026 Profile, up slightly from 21% in 2025, which was the lowest NAR has ever recorded.

How much do first-time buyers put down?

The median first-time buyer put down 9%. Repeat buyers put down a median of 19%.

How many first-time buyers paid cash?

A record 10%. Inheritances played a big role: 28% of all-cash first-time buyers used one.

Sources: National Association of REALTORS®, 2026 Profile of Home Buyers and Sellers and news release (November 5, 2026); Freddie Mac Primary Mortgage Market Survey (November 5, 2026). Payment examples are principal and interest only. This article is general education, not financial advice. Keys & Coffee is not a lender.

Written by

Shivam Kaushik· IMSHIVA

Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee

Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.

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Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.