The latest report from the National Association of REALTORS® (NAR) reveals a concerning trend in the U.S. housing market, as the proportion of first-time home buyers has plummeted to a historic low of just 21%. Concurrently, the average age of these first-time buyers has reached an unprecedented high of 40 years. This alarming data stems from the NAR’s 2025 Profile of Home Buyers and Sellers, which surveyed transactions conducted between July 2024 and June 2025.
Jessica Lautz, NAR’s deputy chief economist and vice president of research, pointed out the significant consequences of this shift in buyer demographics. The decline in first-time buyers—down 50% since 2007, just before the Great Recession—has profound implications for future housing equity and mobility. Lautz notes that today’s first-time buyers are likely to accumulate less wealth from homeownership and may find themselves making fewer moves throughout their lifetimes.
Drawing a stark contrast between different groups of buyers, Lautz described a dichotomy in the housing landscape. While seasoned buyers are leveraging substantial equity to make larger down payments and all-cash offers, first-time buyers are increasingly facing barriers to entry, struggling to secure their place in the market.
Shannon McGahn, NAR’s executive vice president and chief advocacy officer, emphasized the critical role homeownership plays in wealth building and the American Dream. Delays in entering homeownership until the age of 40 can equate to a loss of approximately $150,000 in equity on typical starter homes. Although programs like FHA and VA have facilitated homeownership for millions, McGahn calls for renewed focus on addressing the underlying affordability crisis.
To mitigate these challenges, McGahn advocates for policies aimed at enhancing housing supply through unlocking existing inventory and incentivizing new construction. Suggested reforms include easing local zoning regulations and modernizing construction methods to promote the swift and affordable development of new homes.
According to the report, first-time buyers report a median down payment of 10%, with personal savings as the primary source (59%), followed by financial assets (26%) and gifts or loans from family (22%). For repeat buyers, the median age stands at 62 years, with a median down payment of 23%.
The survey also found that 24% of all buyers have children living at home, which is an all-time low, while 14% purchased multigenerational homes—down from 17% the previous year. For those opting for multigenerational living, the key reasons include taking care of aging parents, cost savings, and adult children moving back in.
In terms of real estate agent involvement, 88% of all home buyers utilized an agent, reinforcing their value in navigating the complex housing market. A remarkable 91% of buyers expressed satisfaction with their agents, indicating their essential role in facilitating significant financial decisions.
This report serves as both a wake-up call and a roadmap for potential solutions to the ongoing housing crisis, encouraging both industry and policymakers to act decisively in fostering an environment where homeownership can once again be within reach for a broader segment of the population. By addressing the root causes of affordability and supply constraints, there is hope for a revitalization of the dream of homeownership for future generations.