More Americans Are Relying on Inheritance to Buy First Home Aidan Williams First-time homebuyers are not only historically old but also increasingly reliant on family wealth. A record 10% of first-time homebuyers paid all cash in the year through June, with 28% of those transactions backed by inheritance, according to a report from the National Association of Realtors released Thursday.
"The housing market is beginning to see a generational transfer of wealth," Jessica Lautz, deputy chief economist at NAR, said in a statement. "Because people are living longer, the generation receiving that wealth is no longer young adults."
The median age of first-time homebuyers held at a record high of 40. But these buyers still make up just a fraction of the market. First-time homebuyers accounted for 22% of purchases — close to a record low. One in 10 first-time homebuyers used inheritance for their down payment, also a record. A fourth used gifts or loans from family and friends.
The figures underscore how elevated home prices and mortgage rates have raised the financial hurdles to owning a home, particularly for younger Americans.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing