- First-time buyers accounted for just 22% of US home purchases, while their median age reached a record 40.
- A record 10% of first-time buyers paid in cash, with 28% of these buyers using an inheritance.
- Family loans and inherited assets are giving some buyers an advantage in an increasingly expensive housing market.
Buying a first home has traditionally been seen as a milestone reached through years of saving. But for an increasing number of Americans, getting on the property ladder is becoming less about putting money aside from a salary and more about whether family wealth can help bridge the gap.
First-time buyers accounted for just 22% of all US home purchases, close to a record low, according to the National Association of Realtors' (NAR) annual Profile of Home Buyers and Sellers. Their median age also reached a record 40, highlighting how long many people are waiting before they can afford to buy.
The figures point to a widening divide in the housing market. While some prospective buyers continue to struggle with prices and mortgage costs, others are finding a way in through inheritances, financial gifts and support from relatives.
The growing role of inherited wealth is particularly striking among buyers making all-cash purchases. A record 10% of first-time buyers paid for their homes without a mortgage, the highest share since NAR began tracking the figure in 2003.
Among these first-time cash buyers, 28% used an inheritance, while 21% relied on proceeds from selling inherited property. Personal savings remained the biggest source of funds, accounting for 42%.
Why are first-time buyers getting older?
The age gap between buyers using different sources of finance offers another indication of how family wealth is shaping access to homeownership.
First-time buyers who paid entirely in cash had a median age of 54, compared with 38 for those who used a mortgage. The difference suggests that many cash buyers are entering the market later in life, potentially after receiving an inheritance or building up assets over several decades.
NAR deputy chief economist Jessica Lautz said inheritances were playing a significant role in the changing market.
“Inheritances are really driving this,” she said, adding that some buyers had waited a considerable time for wealth to pass from one generation to the next.
“I think it's uncomfortable to ask mom and dad for a gift or loan when you're hitting 40 versus your young 30s,” Lautz said.
The trend could become more pronounced as Baby Boomers age and more wealth passes to younger generations. However, the ability to benefit from an inheritance is far from universal, leaving buyers without family assets at a disadvantage.
The NAR report points to a growing divide between people trying to save independently, many of whom remain priced out, and those who eventually receive financial support from their families.
How are family funds helping buyers compete?
An all-cash offer can make a buyer more attractive to a seller because it removes the need for mortgage approval and can reduce the uncertainty involved in completing a transaction. In competitive markets, that advantage can help buyers secure a property even when they are competing against other offers.
But paying cash does not always mean the buyer has accumulated the full purchase price independently. Some use inherited money, proceeds from selling inherited property or loans from parents. Others draw on investments and retirement assets, including 401(k) accounts, stocks and cryptocurrency.
Some buyers also structure offers to appear similar to cash purchases. For example, they may waive a mortgage contingency, which would otherwise allow them to withdraw if they cannot secure financing.
That approach carries risks. If the buyer cannot complete the purchase, they could lose their deposit. Others use delayed financing, buying the property with cash before taking out a mortgage afterwards.
Family support can also take the form of a formal loan rather than a gift, with the buyer agreeing to repay the money under specified terms.
The pressure is not limited to households on modest incomes. Even buyers earning between $300,000 and $400,000 a year can find it difficult to compete in expensive markets where homes may cost well over $1m.
For younger Americans hoping to buy their first property, the figures underline how much the route to homeownership is changing. Saving remains important, but in a market where prices have moved beyond what many incomes can comfortably support, access to family wealth can make a decisive difference.
As more inheritances pass between generations, the housing market may increasingly reflect not just what buyers earn, but what wealth they stand to receive.
