# Cash buyers reshape first-time homebuying

> A record share of first-time buyers pay all cash, mostly using inheritances, while younger buyers without family wealth are priced out.
- Title: Cash buyers reshape first-time homebuying · NPR | Shortify
- Summary: A record share of first-time buyers pay all cash, mostly using inheritances, while younger buyers without family wealth are priced out.
- Keywords: first-time homebuyers, housing affordability, all-cash offers, inheritances, generational wealth, mortgage rates, national association of realtors, NPR
- Source: NPR — https://npr.org/2026/11/05/nx-s1-6022491/real-estate-all-cash-offer
- Published: 2026-11-05T00:00:00+00:00
- Read time: 2 min
- Topics: first-time homebuyers, housing affordability, all-cash offers, inheritances, generational wealth, mortgage rates, national association of realtors, news
## First-time buyers hit record low
The share of first-time homebuyers remains at a near-record low of 22 percent as a housing shortage and high prices sideline many, according to the National Association of Realtors.
## But cash buyers hit record high
Among those managing to buy, one in ten paid all cash, a record high since such data was collected starting in 2003. These buyers are older and wealthier than in the past.
## Inheritances drive the cash trend
First-time buyers who paid all-cash were more likely than those who financed to use an inheritance, at 28 percent, or proceeds from the sale of an inherited property, at 21 percent.

> Inheritances are really driving this
## All-cash buyers are much older
The median age of all first-time buyers is 40, a record high. For those who financed it was 38, while for those who paid all-cash it was 54.
## Waiting for generational wealth transfer
Older all-cash buyers waited a significant period for generational wealth to come through. The share using inheritances is likely to grow as baby boomers reach their eighties and beyond.
## Mortgage rates fuel all-cash bids
High mortgage rates are driving all-cash offers since they make financing a home for thirty years far more expensive. Real estate agents report seeing all-cash first-time buyers surge since the COVID-19 pandemic.
## Competitive markets demand cash offers
In competitive markets, buyers may receive five or six offers, sometimes ten. Real estate brokers report that maybe three of those offers will be all cash, making it harder for financed buyers to compete.
## Younger buyers without wealth priced out
Seth Daphne Esmeson, thirty-three, lives in Seattle with their spouse and good jobs but carries debt including a car payment and student loans.They have decided buying a home does not make sense at today's prices.
## The wealth gap keeps expanding
Esmeson says the housing market worked better for previous generations and that younger buyers without inheritances have the short end of the deal. The gap between those with family wealth and those without is expanding.

> the gap is expanding
## Key takeaway

First-time homebuyers hit a near-record low of 22 percent, but those buying are older and wealthier, with one in ten paying all cash using inherited wealth.