Story perspectives

First-Time Homebuyers Face Record 19% Down Payment Challenge

1/27/2026

Summary

Story summary

The median down payment for first-time home buyers is 19%, the highest since 1989.
Many younger workers, typically first-time buyers, have low 401(k) balances, with a median of $16,255 for ages 25–34.
Most first-time buyers rely on personal savings for down payments, while only 26% use retirement accounts.
Laws allow first-time homebuyers to withdraw up to $10,000 from Individual Retirement Accounts (IRAs) without penalties, and 401(k) loans vary by employer.

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Story summary

The median down payment for first-time home buyers is 19%, the highest since 1989.
Many younger workers, typically first-time buyers, have low 401(k) balances, with a median of $16,255 for ages 25–34.
Most first-time buyers rely on personal savings for down payments, while only 26% use retirement accounts.
Laws allow first-time homebuyers to withdraw up to $10,000 from Individual Retirement Accounts (IRAs) without penalties, and 401(k) loans vary by employer.