First-Time Buyers Are Waiting Longer. Here’s What to Do Now.

For many people, buying a first home feels farther away than it did for prior generations. That feeling is understandable—but it can also make people wait longer than they need to.

A new National Association of REALTORS® report found that first-time buyers made up only 22% of home purchases in the past year. The typical first-time buyer was age 40, matching the highest median age ever recorded in the report. nar.realtor

That does not mean someone must be 40 to be ready to buy. It means today’s buyers are facing a tougher combination of high housing costs, rent, student debt, and limited savings time.

The old “20% down” idea may be keeping people on the sidelines

One of the biggest myths in homebuying is that every buyer needs 20% down.

According to NAR’s 2026 buyer profile, the median down payment for first-time buyers was 9%—not 20%. Personal savings remained the most common source of down payment funds, but 25% of first-time buyers used a gift or loan from family or friends. Another 10% used an inheritance. nar.realtor

That is not a message to rush into homeownership or borrow money without a plan. It is a reminder that the path to buying does not look exactly the same for every household.

For some, the right move may be to save more. For others, it may be learning whether gift funds, down-payment assistance, or a lower-down-payment loan option could make a purchase realistic sooner than expected.

Waiting has a cost, too

There are good reasons to wait: a job change, unstable income, high consumer debt, no emergency savings, or simply not being ready for the responsibility of owning a home.

But waiting only because you assume homeownership is impossible can be costly.

When someone delays for years without checking their actual options, they may miss time they could have spent building equity, paying down a mortgage balance, and establishing a stable housing payment. Buying a home is never guaranteed to be the right answer, and home values can move in either direction. Still, understanding your numbers early gives you choices.

The better question is not, “Can I buy the perfect house with 20% down today?”

It is, “What would I need to change to become ready—and what does that timeline actually look like?”

Four practical first steps

1. Find out what a realistic monthly payment looks like.
   Include principal, interest, property taxes, homeowners insurance, mortgage insurance when applicable, and HOA dues.

2. Review credit before house hunting.
   Do not assume a score makes homeownership impossible. Find out what is helping, what is hurting, and what can be improved.

3. Ask about down-payment sources early.
   Savings is not the only possibility. Gift funds and local or state assistance may be options for eligible buyers.

4. Build a plan before you are emotionally attached to a house.
   A preapproval is not a promise to buy tomorrow. It is information that helps you make a better decision when the time is right.

The 2026 NAR survey covered primary-residence buyers who purchased between July 2025 and June 2026. It reflects national trends, so local prices, taxes, insurance, and program availability can look very different. nar.realtor

The takeaway is simple: do not self-reject because you think you need a perfect credit score, a huge down payment, or another decade of waiting. Get the facts, make a plan, and decide from there.

Sources

• National Association of REALTORS®: 2026 Profile of Home Buyers and Sellers release

• NAR: Highlights from the 2026 Profile of Home Buyers and Sellers

About the Author

Lindsay Frangie is a Branch Partner and Mortgage Loan Originator with ALCOVA Mortgage. She helps buyers and homeowners understand their financing options in plain English. NMLS #6048 | ALCOVA Mortgage NMLS #40508 | Equal Housing Lender.