Kevin Sears President | Official website
The National Association of Realtors (NAR) has reported a significant decline in the share of first-time home buyers, reaching a record low of 21%. The typical age for these buyers has increased to 40 years, marking an all-time high. These findings come from NAR’s 2025 Profile of Home Buyers and Sellers, which analyzed transactions occurring between July 2024 and June 2025.
Jessica Lautz, NAR deputy chief economist and vice president of research, commented on the trend: "The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory. 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."
Lautz further described current market dynamics: "Unfolding in the housing market is a tale of two cities. 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."
Shannon McGahn, NAR executive vice president and chief advocacy officer, discussed how delayed homeownership impacts wealth-building: "For generations, access to homeownership has been the primary way Americans build wealth and the cornerstone of the American Dream. 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."
McGahn also called for action on affordability issues: "Today, we must focus on policies that address the root cause of the affordability crisis: inadequate housing supply. 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."
According to survey data:
- First-time buyers had a median age of 40 years with a median down payment at its highest level since 1989 (10%). Most used personal savings as their top source for down payments.
- Repeat buyers were typically aged 62 with higher median down payments (23%) and nearly one-third paying all cash.
- Across all buyer types, only about one-quarter had children under 18 at home—an all-time low—and purchases of multigenerational homes declined compared to last year.
Sellers stayed in their homes longer than ever before—a median period of 11 years—and moved shorter distances when they did relocate.
Use of real estate agents remains widespread; most buyers (88%) engaged an agent or broker during their transaction process. Lautz stated: "Real estate agents remain indispensable in today's complex housing market. 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."
Further details from this report can be found at https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers.
NAR conducted its annual survey by mailing questionnaires to recent primary residence purchasers across various regions; out of over 173,000 contacted households between July 2024–June 2025 there were just over six thousand responses after adjusting for undeliverable mailings—a response rate close to three-and-a-half percent.
The National Association of Realtors represents professionals involved throughout residential and commercial real estate sectors.
