The New Reality for First-Time Homebuyers: What NAR’s 2025 Report Really Reveals

The National Association of REALTORS® just released its 2025 Profile of Home Buyers & Sellers, and this year’s findings paint a very different picture of the American Dream.

For the first time ever, only 21% of buyers were first-time homeowners, and the average first-time buyer is now 40 years old. That’s the oldest on record — and a full decade later than previous generations.

And the financial impact?

Waiting until 40 instead of 30 can cost buyers about $150,000 in lost equity on a typical starter home.

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The Split in Today’s Market

NAR calls it a “tale of two cities” — and it shows:

Repeat Buyers

• Median age: 62

• 23% down payment

• 30% paid all cash

  
  

  They’re leveraging past equity, often outbidding everyone else.

First-Time Buyers

• Median age: 40

• 10% down payment (highest since 1989)

• Down payment sources:

  
  

  • 59% personal savings

  • 26% from financial assets

  • 22% help from family/friends

  
  

Breaking into the market is simply harder than it’s ever been.

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What’s Causing the Gap?

One major issue: not enough homes.

NAR leaders highlight the need for:

• More construction

• Faster, simpler permitting

• Revitalizing underused properties

• Encouraging more owners to sell

Without more inventory, affordability will remain a challenge.

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Buyers & Sellers Are Changing

A few more shifts shaping today’s market:

All Buyers

• Median age: 59

• Only 24% have children at home

• 14% purchased multigenerational homes (mostly for aging parents or cost-saving)

Sellers

• Staying in their homes 11 years (a record)

• Moving about 30 miles, usually into newer or larger homes

Longer stays = fewer homes available.

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Agents Matter More Than Ever

Despite more tech tools, buyers and sellers overwhelmingly relied on real estate professionals:

• 88% of buyers used an agent

• 91% of sellers used an agent

• 91% would work with their agent again

With rising prices, competition, and complex financing, guidance is essential.

What This Means Moving Forward

• If you own a home, your equity has never been more valuable.

• If you’re trying to buy for the first time, preparation and strategy are everything.

• If you’re thinking about selling, your timing is strong — especially in the entry-level price points.

Homeownership is still achievable. The path has just changed.

And if you’re navigating this market — as a buyer, seller, investor, or first-timer — I’m here to help guide you every step of the way.