The Typical First-Time Homebuyer Is Now 40. What Does That Mean for You?
Buying Your First Home at 40? You're Not Alone.
Remember when buying your first home was something people typically did in their 20s or early 30s? Those days are looking a little different.
According to the National Association of REALTORS® (NAR), the median age of a first-time homebuyer has reached 40 years old for the second consecutive year.
That's not the only surprising finding in NAR's newly released 2026 Profile of Home Buyers and Sellers. The report also reveals that more first-time buyers are purchasing homes with cash, receiving financial help from family, and using assets they've accumulated over time.
So, what does all of this mean if you're hoping to buy your first home?
Let's break down some of the numbers.
First-Time Homebuyers Are Getting Older
The 2026 NAR report found that first-time buyers accounted for just 22% of home purchases between July 2025 and June 2026.
For perspective, first-time buyers historically represented approximately 40% of purchases before 2008.
The median age of these buyers is now 40, compared to buyers who were typically in their late 20s during the 1980s.
There are a few reasons behind this shift. Rising housing costs, rent, student loans, and everyday expenses can make saving for a down payment difficult. For many people, getting financially prepared to purchase a home simply takes longer.
And here's something worth remembering: Being a first-time homebuyer doesn't come with an age requirement.
Whether you're 25, 40, or 55, buying your first home is still buying your first home.
The Surprising Rise of First-Time Cash Buyers
One of the most interesting findings in the report is that a record 10% of first-time buyers purchased their homes entirely with cash.
But these buyers weren't necessarily young adults who had saved enough to purchase a starter home.
The median age of first-time buyers who paid cash was 54. For buyers who financed their purchases, the median age was 38.
The report also found that 28% of first-time cash buyers used an inheritance, compared to 9% of first-time buyers who financed.
Across all first-time buyers, 10% reported using an inheritance toward their purchase.
These numbers highlight how family wealth, inheritances, and accumulated financial assets are playing a growing role in homeownership.
Of course, not everyone has access to those resources. And that's an important part of this conversation.
You Don't Need 20% Down to Buy a Home
Let's talk about one of the biggest misconceptions surrounding homeownership.
You do NOT automatically need 20% down to purchase a home.
According to NAR, the median down payment among first-time buyers was just 9%.
The report identified several sources buyers used to fund their down payments:
62% used personal savings.
30% used financial assets, such as investments.
25% received gifts or loans from family and friends.
10% used an inheritance.
Buyers could report multiple funding sources, so these percentages aren't meant to add up to 100%.
The takeaway? Buyers are finding different ways to put together the money needed to purchase a home.
Depending on your financial situation, you may have options that don't require years of saving for a traditional 20% down payment.
What About Down Payment Assistance?
This is where I really want prospective buyers to pay attention.
There are down payment assistance programs that may help eligible buyers with their upfront costs. Depending on the program, assistance can come in the form of grants, forgivable loans, or other types of financing.
Here in the Coachella Valley, there are programs worth exploring for buyers who may qualify.
Some programs are designed specifically for first-time buyers, while others have different eligibility requirements. Income limits, purchase price limits, credit requirements, location, occupancy, and available funding can all play a role.
A few things I encourage buyers to do:
Understand your finances. Know your income, monthly expenses, savings, and existing debt.
Speak with a participating lender. Find out what loan programs you may qualify for.
Explore down payment assistance. Don't assume you make too much or have too little saved without checking.
Understand the full cost. Down payment is only one part of purchasing a home. Closing costs, inspections, insurance, property taxes, and potential mortgage insurance should also be considered.
Assistance isn't guaranteed, and not every program works for every buyer. But it's worth exploring before deciding homeownership is out of reach.
Repeat Buyers Have a Different Advantage
The report also highlighted a significant difference between first-time buyers and people purchasing another home.
Repeat buyers accounted for 78% of purchases, with a median age of 62.
Their median down payment was 19%, and 30% purchased entirely with cash.
Why the difference?
Many repeat buyers have something first-time buyers are still working toward: home equity.
After years of homeownership and appreciation, established homeowners may be able to use the equity from their current property toward their next purchase.
It's one reason the homebuying experience can look very different depending on whether you're entering the market for the first time or already own property.
What Does This Mean for Coachella Valley Homebuyers?
While these statistics reflect buyers nationally, they offer an important perspective for anyone considering purchasing a home here in the Greater Palm Springs area.
The path to homeownership isn't the same for everyone.
Some buyers are saving independently. Others may have financial assistance from family. Some are using down payment assistance programs, while others are purchasing with proceeds from a previous property.
And not everyone is ready to buy today. That's okay, too.
My advice is to start with a conversation and a plan rather than assuming you need a certain amount of money or need to fit a particular buyer profile.
You might be closer than you think, or you might need a little more time to prepare. Either way, understanding your options is a good place to start.
Thinking About Buying Your First Home?
If buying a home is somewhere on your radar, I'd love to help you understand what that process could look like.
I work with buyers throughout Palm Springs and the Greater Coachella Valley, from first-time homebuyers exploring down payment assistance to buyers who are ready to move into their next home.
We can talk about your goals, connect you with lending resources, and explore what options may be available based on your situation.
No pressure to buy tomorrow. Sometimes the first step is simply figuring out what's possible.
Real Estate on your mind? Think Jermaine Antonio every time!
Visit JermaineAntonio.com or reach out to start the conversation.
TLDR;
The takeaway? The typical first-time homebuyer is now 40, and today's buyers are finding different ways to make homeownership happen.
A few things worth remembering:
The median age of a first-time buyer is now 40.
First-time buyers made up just 22% of home purchases.
The median first-time buyer put 9% down, not 20%.
More buyers are using savings, financial assets, family assistance, and inheritances.
Down payment assistance programs may help eligible buyers get into a home sooner.
Buying your first home doesn't have an age requirement, and you don't necessarily need 20% down. The best first step is understanding your options and creating a plan that works for your finances.
Source: National Association of REALTORS®, 2026 Profile of Home Buyers and Sellers, released November 5, 2026. Survey data covers primary-residence purchases from July 2025 through June 2026. These are national figures and may not reflect local Coachella Valley buyer demographics.
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