According to the latest National Association of Realtors (NAR) 2025 Profile of Home Buyers and Sellers, the share of first-time homebuyers has dropped to a record low of 21%, while the typical age of first-time buyers climbed to an all-time high of 40 years. NAR’s analysis of recent homebuyers and sellers covers transactions between July 2024 and June 2025.
"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."
NAR found that the median age of a first-time buyer was 40-years-old, and this segment was putting down a 10% median downpayment, matching the highest level recorded since 1989.
"Unfolding in the housing market is a tale of two cities," Lautz explained. "We're seeing buyers with significant housing equity making larger downpayments and all-cash offers, while first-time buyers continue to struggle to enter the market."
In terms of struggling to enter the market, Redfin reports that in September 2025, U.S. home prices were up 1.7% compared to last year, selling for a median price of $435,331. On average, the number of homes sold was up 7.4% year-over-year, and there were 442,578 homes sold in September this year, up 412,100 homes sold in September 2024.
"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."
The top sources for downpayment as reported by NAR were personal savings, accounting for 59% of buyers; financial assets, including 401(k)s, stocks, or cryptocurrency, accounting for 26% of buyers; and gifts or loans from family and friends accounting for 22% of buyers.
As the 30-year, fixed-rate mortgage (FRM) nears the 6% mark, the national average FRM stood at 6.4% in September, and was up 0.2 points year-over-year.
For repeat buyers, the median age was 62-years-old, putting down a 23% median downpayment. Thirty percent were all-cash buyers.
"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."
