One in ten new homebuyers paid all cash in 2026

One in every ten first-time homebuyers paid the full price of their new house in cash this year, a record high for data that the National Association of Realtors has tracked since 2003. This surge in all-cash purchases is occurring while the total share of first-time buyers remains at a near-record low of 22 percent. Jessica Lautz, the association's deputy chief economist, attributed this shift primarily to inheritances.

The demographic profile of these cash buyers differs sharply from the average first-time purchaser. The median age for all first-time buyers is now 40, a historical high. Among those who financed their purchase, the median age was 38. In contrast, the median age for buyers who paid all-cash was 54. Lautz noted that these buyers often waited a long period for a generational transfer of wealth to arrive.

Funding sources have also changed. While personal savings remain the largest source of down payment money for all first-time buyers, a greater number of buyers are now using assets such as 401(k) plans, stocks, or cryptocurrency. This group relies less on financial gifts from family or friends than in previous years. Lautz suggested that older buyers have had more time to accumulate savings. She also observed that it can feel uncomfortable to ask parents for a loan or gift when a buyer is in their 40s rather than their early 30s.

Local real estate professionals describe a noticeable change in their daily work. Jason Miller, a broker with Trust Real Estate Company in St. Cloud, Minnesota, said he saw virtually zero all-cash offers from first-time buyers during the first 15 years of his career. Since the pandemic, he has handled a growing number of such transactions. Miller explained that buyers use cash to submit the strongest possible offer in a competitive market. High mortgage rates also make financing a home over 30 years more expensive, further encouraging cash bids.

Not all family money comes from recent deaths. Miller sees clients receiving help from relatives who have paid off their own homes or sold a second property. These families often gift some or all of the equity, which Miller describes as a future inheritance. Nate Johnson, a broker associate with RedKey Realty Leaders in St. Louis, noted that some younger buyers borrow cash from relatives to make their bids more attractive. Johnson reported that it is common for five to six offers to be on the table for a single property, with three of those often being all-cash bids. He has seen some buyers refinance into a mortgage after closing to repay their family members.

The prevalence of all-cash offers creates pressure for buyers who cannot save quickly enough. Seth Daphne Esmeson, who lives in Seattle and is about to turn 33, said they and their spouse have stable jobs but also carry debt, including a car payment and student loans. Esmeson feels priced out of the market and currently prefers their rental situation. They stated that the gap between their financial position and home prices is expanding. Esmeson acknowledged that receiving an inheritance is likely the only path to homeownership for them, though they prefer not to plan their life around that event.

The National Association of Realtors report predicts that the share of first-time buyers using inheritances will grow as baby boomers reach their 80s and beyond. The report describes a widening divide between those who are saving independently but remain priced out of homeownership, and those who wait for a transfer of wealth from an older generation.