The National Association of REALTORS® (NAR) has released its 2025 Profile of Home Buyers and Sellers, revealing a historic shift in who is entering the housing market. First-time buyers accounted for only 21% of all U.S. home purchases between July 2024 and June 2025—the lowest share ever recorded. The median age of a first-time buyer rose to 40, also setting a new record.
NAR Deputy Chief Economist Jessica Lautz attributes this shift to rising financial pressures. “This year’s data shows that first-time buyers are older, more financially established, and taking longer to enter the market,” Lautz explained, citing high mortgage rates, limited affordability, and record personal debt as key drivers.
Affordability Shrinks the First-Time Buyer Pool
Historically, first-time homebuyers made up 38–40% of the market. Today’s 21% share highlights how affordability and inventory shortages are reshaping the American Dream.
Financial barriers are intensifying:
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Median down payment for first-time buyers reached 10%, the highest since 1989.
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59% used personal savings to fund their purchase.
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26% drew from retirement or investment accounts.
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22% received financial assistance from family.
Older Buyers Dominate the Market
The challenges facing new buyers stand in stark contrast to repeat buyers, whose median age has climbed to 62. Nearly 30% of repeat buyers paid in cash, underscoring the widening financial gap between new entrants and established homeowners.
Across all buyers:
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The median age reached 59.
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Only 24% had children under 18—a historic low.
The Cost of Waiting: Lost Equity
NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn warned that delayed homeownership could cost families over $150,000 in lost lifetime equity.
“Buying a home in your early thirties used to be part of the American Dream. Now, families are renting longer and buying later—or not at all.”
— Shannon McGahn, NAR
Policy Solutions and Lifestyle Adjustments
NAR continues to push lawmakers to increase affordability and supply, advocating for:
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Zoning reform and density expansion
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Faster, modernized permitting
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Down-payment assistance programs
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Financial literacy initiatives for first-time buyers
Meanwhile, buyers themselves are adapting. More are:
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Living with parents to save longer
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Renting past age 35
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Relocating to smaller metros or rural areas to find affordability
Despite barriers, McGahn emphasized that homeownership remains a foundational pillar of wealth and community stability.
“Housing is foundational to our economy and communities. These findings should motivate lawmakers to act—because when we make homeownership accessible, everyone benefits.”
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Source: National Association of REALTORS®