First-Time Buyers Use Inheritances to Fund Record Cash Home Purchases

Generational wealth transfers are reshaping access to homeownership in the United States, with 10% of first-time buyers completing all-cash purchases in 2025. The National Association of Realtors (NAR) reported the record figure on November 5, 2026, highlighting how inheritances are helping some buyers overcome high property prices and mortgage costs.

The findings come from NAR's 2026 Profile of Home Buyers and Sellers, which examined residential transactions between July 2025 and June 2026. The percentage of first-time buyers paying entirely in cash reached its highest level since the organization began tracking the data in 2003.

Among first-time buyers making cash purchases, 28% used an inheritance to help finance their transactions. By comparison, only 9% of first-time buyers who obtained financing reported using inherited money.

The difference highlights an increasing divide between households accumulating savings independently and those receiving financial assistance from older generations. The NAR report identified this development as an emerging influence on who can afford to enter the housing market.

"It is critical when analyzing first-time buyers to understand there is a growing divide among those who are saving independently and priced out of homeownership, versus those who are waiting on the sidelines but then given a generational transfer of wealth," the National Association of Realtors report said.

The age profile of buyers also reflects this shift. First-time purchasers who paid cash had a median age of 54, compared with 38 among those who financed their homes. Across all first-time buyers, the median age reached 40, matching the highest level recorded by NAR.

Jessica Lautz, NAR deputy chief economist and vice president of research, identified affordability as the central obstacle for younger households attempting to purchase their first homes.

"Affordability remains the biggest hurdle for first-time buyers," Jessica 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."

First-time buyers accounted for 22% of home purchases, up slightly from the previous year's record low of 21%. Personal savings remained the leading source of down payments, used by 62% of first-time purchasers. Financial assets, including retirement accounts and stocks, accounted for 30%, while 25% received gifts or loans from family and friends.

Inheritance accounted for 10% of down payment sources, representing the highest share recorded by NAR. The findings indicate that family wealth is becoming an increasingly important factor in determining when households can purchase their first property.

Lautz also highlighted how longer life expectancy is changing the timing of wealth transfers and subsequent home purchases.

"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."

Repeat buyers continued to dominate the market, representing 78% of all purchases. Their median age was 62, while 30% completed all-cash transactions. Their median household income increased to $127,000 from $111,700 the previous year, and their median down payment reached 19%.

According to Lautz, accumulated housing equity has given repeat purchasers greater financial flexibility to move into larger properties or more desirable locations. Their transactions are frequently driven by personal preferences rather than the necessity of entering homeownership.

Across all buyers, the median age was 58, down from 59 a year earlier. NAR also found that 14% purchased multigenerational homes, while 4% bought properties with non-romantic roommates, matching a record high.

The report also documented substantial reliance on real estate professionals. Approximately 90% of buyers and 92% of sellers used an agent, while transactions completed directly by owners accounted for 5% of sales, matching the historical low.

NAR collected the findings through a survey distributed in July 2026 to 228,250 recent homebuyers. The organization received 7,125 responses from purchasers who bought primary residences between July 2025 and June 2026, producing an adjusted response rate of 3.1%.