Buying your first home is an exciting milestone, but for many Americans, getting there is taking longer than expected. Rising housing costs, affordability concerns, and the challenge of saving for a down payment continue to shape the homebuying experience in 2026.

According to the National Association of REALTORS® (NAR), the latest 2026 Profile of Home Buyers and Sellers, released November 5, 2026, shows that first-time buyers are gradually returning to the market. However, their share of home purchases remains well below historical levels.

For anyone considering buying a first home, these findings offer valuable insight into today's housing market and what it takes to prepare for homeownership.

 

What Does the Latest NAR Report Tell Us?

One of the biggest takeaways from the 2026 report is that first-time homebuyers are older than ever.

Here are some important findings:

  • First-time buyers account for 22% of home purchases, up slightly from 21% in 2025.

  • The median age of first-time buyers is 40, matching last year's record high.

  • The typical down payment is 9% for first-time buyers.

  • 10% of first-time buyers paid all cash, the highest percentage recorded.

  • 62% used personal savings as a source of down payment funds.

  • 30% used financial assets, such as retirement accounts, stocks, or cryptocurrency.

  • 25% received gifts or loans from family and friends to help with their down payment.

Before 2008, first-time buyers typically represented around 40% of home purchases. Today's numbers show just how much affordability and limited housing inventory have changed the path to homeownership.

Why Are First-Time Buyers Waiting Longer to Purchase?

For many prospective buyers, the biggest obstacle isn't the desire to own a home. It's getting financially ready.

The NAR report highlights several challenges that continue to affect first-time buyers.

1. Saving for a Down Payment

Rent, everyday expenses, student loans, and other financial responsibilities can make it difficult to set aside money for a future home.

While a 20% down payment is commonly discussed, it isn't always required. Some mortgage programs allow qualified buyers to purchase with a much smaller down payment.

2. Finding an Affordable Home

Finding a property that fits both a buyer's needs and budget can take time. Limited affordable inventory means buyers may need to consider different property types, locations, or home features.

3. Managing Monthly Housing Costs

A mortgage payment is only one part of homeownership. Property taxes, homeowners insurance, utilities, maintenance, and potential homeowners association fees should also be included in the budget.

Understanding the full cost of owning a home can help buyers avoid taking on more than they can comfortably afford.

 

What Does This Mean for First-Time Buyers in Southwest Missouri?

While NAR's report reflects national trends, its findings provide useful context for buyers here in Southwest Missouri and Southeast Kansas.

The good news is that buying your first home doesn't necessarily mean purchasing a large property or finding your forever home right away.

For some buyers, a smaller home, a property outside a busy city center, or a home that needs a little updating may be a more realistic starting point.

Communities throughout the I-49 corridor, including Nevada, Lamar, Carthage, Joplin, Webb City, and surrounding areas, offer different housing options worth exploring.

The key is to understand what is available locally, compare properties carefully, and focus on what makes sense for your financial situation.

 

5 Practical Steps to Prepare for Your First Home Purchase

If owning a home is one of your goals for 2026 or beyond, here are five steps to help you get started.

1. Review Your Finances

Take a close look at your income, monthly expenses, savings, and existing debt. Establishing a realistic budget is an important first step.

2. Explore Your Mortgage Options

Talk with a trusted lender about available loan programs, down payment requirements, interest rates, and estimated monthly payments. Programs such as FHA, VA, and USDA loans may be worth exploring if you meet their eligibility requirements.

3. Get Pre-Approved

A mortgage pre-approval can help you understand your potential buying power and show sellers that you're a serious buyer. Remember that pre-approval is not a final loan commitment.

4. Make a List of Your Priorities

Think about the number of bedrooms, location, property size, commute, and other features that matter most to you. Knowing your priorities can make the home search more focused.

5. Work With a Local Real Estate Professional

A local real estate agent can help you understand the market, identify available properties, arrange showings, evaluate comparable sales, and navigate the offer and negotiation process.

Having someone familiar with the local market by your side can make the experience less overwhelming.

 

Is 2026 a Good Time to Buy Your First Home?

There isn't one perfect time that works for every buyer.

The right time to purchase depends on your financial readiness, lifestyle, long-term plans, and the homes available within your budget.

Waiting until you feel financially prepared can be a smart decision. At the same time, it's worth exploring your options rather than assuming homeownership is out of reach.

The latest NAR findings show that first-time buyers are still finding ways to enter the market, even as affordability challenges continue. With proper preparation, realistic expectations, and guidance from experienced professionals, taking that first step can become more manageable.

 

Ready to Take the First Step Toward Homeownership?

Your first home doesn't have to be perfect. It just needs to be the right fit for your needs, budget, and future plans.

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About the Authors

Jennifer Frese & Scott Theis are real estate professionals with Stutesman’s Action Realty, serving Southwest Missouri and Southeast Kansas for over 34 years.