The share of Americans buying their first home has fallen to a modern low as scarce supply and high costs continue to shut newcomers out of the market.
Record Low Share, First-Time Age Hits Forty
Just 21% of buyers were first-timers in the 12 months through June 2025, the National Association of Realtors said in its 2025 Profile of Home Buyers and Sellers released on Nov. 4. That percentage is about half the long-time average of 38%, in records that date back to 1981. The typical first-time buyer is now 40 years old, also a record.
"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's deputy chief economist. "Unfolding in the housing market is a tale of two cities," she added. "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."
All-Cash Purchases Tilt Market Toward Repeat Owners
It is also worth noting that the share of homes purchased entirely with cash hit an all-time high over the past year at 26%, further tilting the field toward older, equity-rich repeat buyers.
Wealth Gap Widens As Prices Hit Records
The report's findings speak to the broader economy as much as to housing. Homeownership remains a reliable path to building wealth. A 2024 Aspen Institute study found renters' median net worth was just $10,400, compared with nearly $400,000 for homeowners. Renters, on the other hand, were less likely to post positive monthly cash flow, leaving little to save for a down payment.
For watchers of the housing market, none of this is surprising. The median existing single-family home price reached a record $412,500 in 2024, according to Harvard University's Joint Center for Housing Studies. By Harvard's math, a buyer would need at least $126,700 in annual income to afford payments on a median-priced home using a 31% debt-to-income ratio.
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