An annual study out by the the National Association of Realtors® today reveals some alarming homebuyer statistics, namely the number of first-time buyers has dropped to a record low while the age of those same buyers has reached an all-time high, posing some dire implications for younger buyers trying to enter the housing market. 

According to the National Association of Realtors® 2025 Profile of Home Buyers and Sellers released Nov 4, the share of first-time homebuyers has dropped to a historic low of 21%, while the typical age of first-time buyers climbed to an all-time high of age 40.  The annual survey of recent homebuyers and sellers looks at real estate transactions that have closed 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 here.

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