First-Time Home Buyer Statistics 2025: 75+ Facts, Data & Trends Last updated: January 30, 2026
First-time home buyers are facing the toughest market conditions in over four decades. With record-high prices, elevated mortgage rates, and fierce competition from cash-rich repeat buyers, breaking into homeownership has never been harder. This comprehensive resource compiles over 75 verified statistics from authoritative sources including the National Association of REALTORS (NAR), Freddie Mac, U.S. Census Bureau, and Federal Reserve.
First-time buyers face unprecedented challenges in today's housing market Key Statistics at a Glance 2025 Headline Numbers 21% of all home buyers are first-time buyers, the lowest share ever recorded40 years old is the median age of first-time buyers, an all-time high10% median down payment for first-time buyers, the highest since 1989$97,000 median household income for first-time buyers88% of all home buyers used a real estate agent First-Time Buyer Demographics Age Trends The age of first-time home buyers has risen dramatically over the past four decades. In the 1980s, the typical first-time buyer was in their late 20s. Today, they are 40 years old, reflecting the growing difficulty of entering the housing market.
Year Median Age Change Source 1981 29 years Baseline NAR 2010 30 years +1 year NAR 2021 33 years +4 years NAR 2022 36 years +7 years NAR 2023 35 years +6 years NAR 2024 38 years +9 years NAR 2025 40 years +11 years NAR 2025 Profile
Household Composition Metric Value Source Married couples (first-time buyers) 50% NAR 2024 Single females (first-time buyers) 19% NAR Single males (first-time buyers) 9% NAR Unmarried couples (first-time buyers) 18% NAR Buyers with children under 18 24% NAR 2025 First-time buyers with children under 18 32% NAR
Generational Breakdown Generation Share of All Buyers First-Time Buyer Rate Source Millennials (ages 25-44) 43% Highest among all generations NAR Younger Millennials (25-34) 18% Most likely first-timers NAR Older Millennials (35-44) 25% Largest buyer group NAR Baby Boomers 40%+ of homes owned Primarily repeat buyers NAR Gen Z 3% Entering market NAR
Down Payment Statistics Down payment requirements continue to rise, making it harder for first-time buyers to enter the market. The median down payment for first-time buyers hit 10% in 2025, the highest level since 1989.
Down Payment Percentages Buyer Type 2025 2024 2023 Source First-time buyers (median) 10% 9% 8% NAR Repeat buyers (median) 23% 23% 19% NAR All buyers (median) 19% 18% 14% NAR All-cash buyers 26% 26% 28% NAR
Dollar Amounts Home Price 10% Down (First-Time) 23% Down (Repeat) $300,000 $30,000 $69,000 $400,000 $40,000 $92,000 $433,200 (median) $43,320 $99,636 $500,000 $50,000 $115,000
Sources of Down Payment (First-Time Buyers) Source Percentage Source Personal savings 59% NAR 2025 Financial assets (401k, stocks, crypto) 26% NAR 2025 Gifts or loans from family/friends 22% NAR 2025 Inheritance All-time high NAR 2025
Key Insight For the first time ever, first-time buyers are more likely to use financial assets (such as 401k withdrawals and stock sales) than assistance from family and friends for their down payment. This shift reflects the older age of today's first-time buyers, who have had more time to accumulate financial assets.
The Affordability Crisis Income Requirements Metric Value Source Median first-time buyer household income $97,000 NAR 2024 Income increase from 2022 +$26,000 NAR Income needed to afford median home $119,800 Harvard JCHS Monthly payment for median home $3,096 Harvard JCHS Renters who can afford median home 1 in 7 (14%) Harvard JCHS
Mortgage Rate Impact Wealth Impact of Delayed Homeownership Metric Value Source Equity lost buying at 40 vs 30 ~$150,000 NAR First-time buyer share drop since 2007 -50% NAR Median seller time in home 11 years NAR 2025
First-Time Buyer Market Share Trends The share of first-time buyers has plummeted to record lows, representing a dramatic shift from pre-recession norms when 40% of buyers were first-timers.
Year First-Time Buyer Share Notes Source Pre-2008 (typical) 40% Historical norm NAR 2021 34% Post-pandemic surge NAR 2022 26% Record low at time NAR 2023 32% Slight rebound NAR 2024 24% New record low NAR 2024 2025 21% All-time record low NAR 2025
Financing Statistics Loan Types Used by First-Time Buyers Loan Type 2024 2009 Change Source Conventional loan 52% N/A N/A NAR FHA loan 29% 55% -26% NAR VA loan 9% N/A N/A NAR First-time buyers who financed 91% N/A N/A NAR
Mortgage Denial Reasons Reason Share of Rejections Ages 23-31 Source Too much debt (high DTI ratio) 32% 46% NAR Credit score issues Varies Higher for young NAR Insufficient income Varies Varies NAR
Credit Score Data Metric Value Source Median first-time buyer credit score 768 NY Fed Q2 2022 Minimum FHA score (3.5% down) 580 HUD Minimum conventional score (typical) 620 Industry standard
Biggest Challenges for First-Time Buyers Challenge % Citing Notes Source Finding the right property #1 difficulty Limited inventory NAR 2025 Saving for down payment 27% Younger millennials NAR Understanding buying process Top concern First-timers NAR High rent preventing savings Significant Holding back savings NAR 2025 Student loan debt Significant Holding back savings NAR 2025 Credit card debt Significant Holding back savings NAR 2025 Car loans Significant Holding back savings NAR 2025 Child care costs 21% Parents struggling NAR 2025
Demographics by Race First-Time Buyer Rates by Race/Ethnicity Homeownership Rates by Race Race/Ethnicity Homeownership Rate 10-Year Change Source Asian American 63% Significant gains NAR White 72.7% Stable NAR Hispanic 51% Biggest gains NAR Black/African American <45% +0.4% NAR
Real Estate Agent Usage Metric 2025 Value Source All buyers who used an agent 88% NAR 2025 Previously owned home buyers using agent 92% NAR 2025 Buyers satisfied with agent 91% NAR 2025 Sellers who used an agent 91% NAR 2025 FSBO market share 5% NAR 2025 FSBOs who knew buyer 60% NAR 2025
Historical Trends First-Time Buyer Age Over Time Era Median Age Context 1980s Late 20s Pre-digital era, lower prices 1981 29 Repeat buyer age was 36 2000s Early 30s Pre-recession boom 2010 30 Post-recession recovery 2021 33 Pandemic housing boom 2025 40 All-time high, repeat buyers at 62
Buyers with Children Trend Year % with Children Under 18 Source 1985 58% NAR 2025 24% NAR 2025 Change -34 percentage points All-time low in 2025
Neighborhood Priority Changes Factor 2014 2025 Trend Source Quality of neighborhood N/A 59% Top priority NAR Convenience to friends/family N/A 47% #2 priority NAR Convenience to job 52% 31% Declining NAR
Home Types Purchased Metric Value Source First-time buyers purchasing previously owned homes 85% NAR 2024 Multigenerational home purchases 14% NAR 2025 Sellers purchasing newer home 50% NAR 2025 Sellers purchasing larger home 34% NAR 2025
Reasons for Multigenerational Purchases Reason Percentage Source Take care of aging parents 41% NAR 2025 Cost savings 29% NAR 2025 Adult children (18+) moving back home 27% NAR 2025
Down Payment Assistance Programs Cite This Research
Real Estate Agent Near Me. (2026). First-Time Home Buyer Statistics 2025: 75+ Facts, Data & Trends. Retrieved from https://realestateagentnearme.com/first-time-home-buyer-statistics/
Feel free to cite any statistics from this page. We only ask that you link back to this resource when using our compiled data.
Sources Related Resources 