FTHB Survey 2026

‘Optimistic’ First-Time Homebuyers Open to New Paths to Homeownership

TD 2026 First-Time Homebuyer Pulse Survey

Affordability pressures are driving aspiring homebuyers to make significant tradeoffs on their path to purchase, according to an annual TD survey of Americans planning to buy their first home in 2026. With elevated interest rates, broader economic uncertainty and limited inventory, first-time buyers are increasingly open tonon-traditional financing and finding alternative funding sources to make homeownership a reality.

First-time homebuyers would consider the following financial strategies:

74%

78% / 74%

50%

67%

Would consider a 50-year mortgage if available

Younger millennials (78%) and Gen Z (74%) would use their 401(k) for a home purchase if allowed

Would buy a fixer-upper

Plan to receive financial support from family/loved ones (higher for younger millennials and Gen Z)

First-time homebuyers’ desire and motivation to buy remains strong, and they are approaching their budgeting and financial boundaries with flexibility. They are open to various alternative approaches to make that first purchase possible amid elevated rates, broader economic uncertainty and limited inventory.

Steve KaminskiHead of Residential Lending, TD Bank U.S.

First-time homebuyers are making financial sacrifices and focusing on budgeting to purchase a home. Interest rates (29%) and affordability (28%) are the top barriers to purchasing a home for first-time buyers.

Realtor showing a couple around a new home

Man and woman smiling while talking to a realtor in a doorway of a home

Woman holding a baby while holding house keys

Optimism but on a delayed timeline

A majority (81%) of first-time homebuyers remain optimistic about the market, and they are not backing down.

Shifting timelines, same aspirations

Median age for first-time buyers is 40

Gen Z aims for younger ages (46% expect to buy between 25–29)

The timeline for homeownership is shifting for today’s first-time homebuyers

81%

58%

Believe homeownership is a smart long-term investment

Expect to live in their home for more than 10 years (up from 51% in 2025)

Credit as a financial-readiness indicator

First-time homebuyers are preparing more deliberately for their purchase than in previous years, taking steps to improve financial readiness and plan ahead. Many are increasingly focused on their credit report, using it as a tool to strengthen their financial foundation.

Buyers are actively monitoring and improving their credit by:

Many first-time homebuyers said they need greater clarity on the home purchase process, highlighting the growing complexity of navigating today’s market. Buyers want more information on affordability, insurance, property taxes and closing costs.

Guidance and trusted resources remain critical

Have spoken with a mortgage lender

Have securedpre-qualification/pre-approval

First-time homebuyers crave access to clear guidance and reliable advice, which is more important than ever in today’s environment. Meeting with a lender early in the process helps them better understand how they should structure their timeline, prepare their full financial picture, make a budget and assess other common costs in their region.

Scott LindnerNational Sales Director, TD Bank U.S.

Methodology

This CARAVAN survey was conducted by Big Village among a sample of 1,003 U.S. adults who have never owned a house and plan to buy their first home in 2026. Half of the respondents (N=501) reside in the following states: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Pennsylvania, Delaware, Maryland, District of Columbia, Virginia, North Carolina, South Carolina, and Florida. In addition, 255 interviews were conducted among low- to moderate-income respondents, defined on a per-state basis as having household income within 50% to 80% of the median family income for that state. We hope you found this helpful. This article is for informational purposes only and is based on information available as of May 2026 and is subject to change. This content is not intended to be used or acted upon with respect to any client's specific circumstances. For specific advice about your unique circumstances, consider talking with your qualified professionals. No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission. All rights reserved. ©2026, TD Bank, N.A and/or its affiliates. All rights reserved. The TD logo and other TD trademarks are owned by The Toronto-Dominion Bank or its affiliates and are used under license. TD Bank, N.A., Member FDIC. Equal Housing Lender.