The share of first-time homebuyers has fallen to a historic low, according to the National Association of REALTORS® (NAR)’s 2025 Profile of Home Buyers and Sellers. The annual report shows that first-time buyers made up just 21% of all home purchases between July 2024 and June 2025—the lowest level since NAR began tracking the data in 1981.

Affordability barriers continue to sideline first-time buyers

The report points to limited housing inventory, elevated mortgage rates, and persistently high home prices as key factors keeping first-time buyers out of the market. During the period in which the survey was conducted, the average 30-year mortgage rate was 6.69%, and new listings were often priced well above what typical entry-level buyers could afford.

Among those who did manage to purchase their first home, the median age rose to 40, the highest ever recorded. Historically, first-time buyers were typically in their late 20s. The report also found that 59% used personal savings for their down payment, while 26% relied on financial assets, marking a shift away from past reliance on gifts or loans from family and friends.

Repeat buyers hold an advantage

The market continues to favor repeat buyers with accumulated equity and higher incomes. The median age of repeat buyers reached 62, another record high, and nearly 30% purchased their homes entirely in cash. The typical down payment for repeat buyers was 23%, while first-time buyers averaged 10%, the highest level since 1989.

“The data underscores a widening affordability divide in the market,” said Jessica Lautz, NAR’s deputy chief economist and vice president of research. “While first-time buyers face the highest barriers in decades, repeat buyers are capitalizing on record housing equity and strong cash positions.”

Homeowners also are holding onto their properties longer before selling, with the median tenure hitting 11 years, the longest in the report’s history. As home prices appreciate, many sellers are realizing substantial returns but remain hesitant to list due to low existing mortgage rates—a dynamic often referred to as the “golden handcuff” effect.

Changing demographics and buyer motivations

Married couples continue to dominate home purchases, accounting for 61% of all buyers, while single women represented 21% and single men 9%. Among first-time buyers, single women made up 25%, underscoring their increasing presence in the market despite affordability constraints.

The report also notes a decline in buyers with children under 18, now at just 24%, an all-time low. Analysts attribute this to demographic shifts, including lower birth rates and the growing share of older repeat buyers, as well as the high cost of childcare, which many cited as a barrier to saving for a down payment.

For those entering or reentering the market, proximity to friends and family (47%) has become nearly as important as neighborhood quality (59%), surpassing considerations like commute time. The share of buyers prioritizing convenience for work fell to 31%, down from more than 50% a decade ago—mirroring the flexibility of post-pandemic, hybrid work patterns.