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Record share of first-time homebuyers pay all cash : NPR
NPR • • business
Key Points:
- First-time homebuyers make up just 22% of the market, a near-record low, with many sidelined by housing shortages and high prices, according to the National Association of Realtors (NAR).
- Those first-time buyers who do purchase homes tend to be older and wealthier, with a record 10% paying all cash, often funded by inheritances or proceeds from inherited property.
- The median age of first-time buyers is now 40, rising to 54 for all-cash buyers, reflecting a trend of waiting for generational wealth transfers to enable home purchases.
- More buyers are using personal savings and financial assets like 401(k)s or stocks for down payments rather than family gifts, as older buyers may feel uncomfortable asking for help later in life.
- The increase in all-cash offers, driven by high mortgage rates and generational wealth transfers, is making the market more competitive and challenging for younger buyers without inherited wealth or significant savings.
