Cash-Rich First-Time Homebuyers Hit Record 10 Percent
The National Association of Realtors reports a record 10 percent of first-time homebuyers are paying cash, driven largely by generational wealth transfers.
First-time homebuyers now represent a near-record low of 22 percent of the housing market, according to the National Association of Realtors. High property prices and housing shortages have limited entry for many, but a record 10 percent of those who do enter the market are paying in all cash, the highest share since data collection began in 2003.
These all-cash buyers are significantly older than those who seek financing, with a median age of 54 compared to 38. The trend is primarily fueled by generational wealth transfers; 28 percent of all-cash first-time buyers used an inheritance, while 21 percent used proceeds from an inherited property. High mortgage rates and intense competition have further incentivized cash bids to make offers more attractive to sellers.
Deputy chief economist Jessica Lautz noted that inheritances are a primary driver of this shift, suggesting buyers waited for the transfer of wealth to occur before purchasing. This trend highlights a growing divide between buyers with inherited assets and those priced out of homeownership by debt and high entry costs.
