Aspiring homeowners in New Jersey and across the country are proving they are willing to break traditional financial taboos to secure their first set of keys. According to the 2026 First-Time Homebuyer Survey released today by Mount Laurel-headquartered TD Bank, affordability pressures are driving a new wave of “flexibility” in how residents approach the housing market.
The survey reveals that while high interest rates and limited inventory remain significant hurdles, first-time buyers are increasingly open to extreme measures—including 50-year mortgages and tapping into retirement savings—to make homeownership a reality.
The data highlights a major shift in the financial boundaries of Gen Z and Millennial buyers. As the median age of a first-time homebuyer nationally climbs toward 40, younger generations are looking for creative entry points:
- Extended Loan Terms: Nearly 74% of respondents said they would consider a 50-year mortgage if it were available to lower monthly payments.
- Retirement Risks: 78% of younger Millennials and 74% of Gen Z respondents would likely use their 401(k) funds to help with a down payment.
- Fixer-Upper Comfort: Half of those surveyed would feel comfortable buying a “fixer-upper” rather than a move-in-ready home.
“First-time homebuyers’ desire and motivation to buy remains strong, and they are approaching their budgeting and financial boundaries with flexibility,” Steve Kaminski, head of Residential Lending at TD Bank U.S., said.
For decades, financial advisors have recommended spending no more than 28% of monthly income on a mortgage. In 2026, that rule is being discarded. More than half of first-time buyers (54%) anticipate spending between 26% and 35% of their income on housing, a notable jump from just a year ago.
To reach these goals, 31% of buyers admitted they have either reduced or completely stopped contributing to their retirement accounts to accelerate their down payment savings.
In New Jersey’s high-priced market, external support has become a necessity. Two-thirds (67%) of first-time buyers are receiving or planning to receive financial help from family or loved ones. This “intergenerational wealth transfer” is particularly prevalent among younger Millennials, where the figure rises to 76%.
Despite the financial strain, optimism remains high. 81% of respondents believe homeownership is still a smart long-term investment, with 58% planning to live in their first home for more than a decade.
While more New Jerseyans are proactively monitoring their credit scores—70% are focusing on on-time payments and 55% have created a formal homeownership budget—a significant gap remains in professional engagement.
- Only 27% of aspiring buyers have actually spoken with a mortgage lender.
- Only 22% have secured a pre-approval, despite their goal to buy this year.
“First-time homebuyers crave access to clear guidance and reliable advice,” Scott Lindner, national sales director at TD said. “Meeting with a lender early helps them better understand how they should structure their timeline and assess other common costs in their region, like N.J.’s property taxes.”
