November 4, 2025
Share of First-Time Buyers Reaches Record Low
NAR
research also shows the typical first-time buyer is now 40, repeat
buyers average 62 and 88% of all buyers used an agent or broker.
WASHINGTON
— The share of first-time home buyers dropped to a record low of 21%,
while the typical age of first-time buyers climbed to an all-time high
of 40 years, according to the National Association of Realtors®’ 2025
Profile of Home Buyers and Sellers. This annual survey of recent home
buyers and sellers covers transactions between July 2024 and June 2025
and offers industry professionals, consumers and policymakers detailed
insights into homebuying and selling behavior.
“The historically low share
of first-time buyers underscores the real-world consequences of a
housing market starved for affordable inventory,” said Jessica Lautz,
NAR deputy chief economist and vice president of research. “The share of
first-time buyers in the market has contracted by 50% since 2007 –
right before the Great Recession. The implications for the housing
market are staggering. Today’s first-time buyers are building less
housing wealth and will likely have fewer moves over a lifetime as a
result.”
“Unfolding in the housing
market is a tale of two cities,” Lautz explained. “We’re seeing buyers
with significant housing equity making larger down payments and all-cash
offers, while first-time buyers continue to struggle to enter the
market.”
“For generations, access to
homeownership has been the primary way Americans build wealth and the
cornerstone of the American Dream,” said Shannon McGahn, NAR executive
vice president and chief advocacy officer. “Delayed or denied
homeownership until age 40 instead of 30 can mean losing roughly
$150,000 in equity on a typical starter home. FHA and VA programs have
helped millions of Americans access homeownership, join the middle
class, and create intergenerational wealth – a testament to smart
government policy in support of homeownership.”
“Today, we must focus on
policies that address the root cause of the affordability crisis:
inadequate housing supply,” McGahn added. “That means both unlocking
existing inventory and enabling new construction. We need solutions that
encourage more owners to sell, revitalize underused properties,
streamline local zoning and permitting barriers, and modernize
construction methods to build more homes faster and more affordably.
These commonsense reforms make homes more affordable, restore
opportunity, and help revive the dream of homeownership for generations
to come.”
First-time buyers
*Median age: 40 years old
*10% median down payment – matching the highest level recorded since 1989
Top sources for down payment:
*Personal savings (59%)
*Financial assets – such as a 401(k), stocks, or cryptocurrency (26%)
*Gifts or loans from family and friends (22%)
Repeat buyers
*Median age: 62 years old
*23% median down payment
*30% were all-cash buyers
All buyers
Median age: 59 years old
24% have children under the age of 18 living at home – an all-time low
14% purchased a multigenerational home – down from 17% in 2024
Top reasons cited for purchasing a multigenerational home:
*Take care of aging parents (41%)
*Cost savings (29%)
*Children over the age of 18 moving back home (27%)
All sellers
*Median time in home before selling: 11 years – an all-time high
*Median distance moved: 30 miles – down from 35 miles last year
*50% purchased a newer home
*34% purchased a larger home
Use of real estate agents
*88% of all home buyers used an agent or broker
*92% of buyers of previously owned homes relied on an agent or broker
*91% of buyers would use their agent again or recommend them to others
*91% of sellers used an agent – equal to the highest percentage on record
“Real estate agents
remain indispensable in today’s complex housing market,” Lautz said.
“Beyond guiding buyers and sellers through what is often the largest
financial decision of their lives, agents provide critical expertise,
negotiation skills, and emotional support during an increasingly
challenging process.”
Learn more and download highlights from the report
Methodology
In July 2025, NAR mailed
out a 120-question survey to 173,250 recent home buyers, using a random
sample weighted to be representative of sales on a geographic basis. The
recent home buyers had to have purchased a primary residence home
between July 2024 and June 2025. A total of 6,103 responses were
received from primary residence buyers.
After accounting for
undeliverable questionnaires, the survey had an adjusted response rate
of 3.5%. Data gathered in the report is based on primary residence home
buyers.
According to the Realtors®
Confidence Index, 84% of home buyers were purchasing as primary
residences in 2024, accounting for 4,746,000 homes sold that year (among
new and existing homes). Using that calculation, the sample at the 95%
confidence level has a confidence interval of plus or minus 1.25%.
The
2025 edition of NAR’s Profile of Home Buyers and Sellers continues the
longest-running series of national housing data evaluating the
demographics, preferences and experiences of recent buyers and sellers.
Results are representative of owner-occupants and do not include
investors or vacation homes.
© 2025 National Association of Realtors® (NAR)