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First-Time Homebuyers Hit Historic Low at 21%

11/5/2025

44 3 Full Breakdown

Summary

Story summary

The National Association of Realtors (NAR) reports first-time homebuyers account for 21% of the market, a historic low.
The median age of first-time buyers is 40, reflecting affordability challenges and high mortgage rates.
Repeat buyers have a median age of 62 and often hold substantial equity.
Twenty-six percent of buyers made all-cash purchases, highlighting a division between secure buyers and entrants.

History

Historical Context

The U.S. housing crisis of 1980 saw mortgage rates soar above 18%, drastically limiting first-time homebuyers to just 21% of the market. This crisis followed decades of fluctuating home prices and lending practices, including the establishment of Fannie Mae in 1938 and the deregulation of mortgage lending in the late 1970s. Today, the median age of first-time buyers is 40, highlighting ongoing affordability challenges.

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Story summary

The National Association of Realtors (NAR) reports first-time homebuyers account for 21% of the market, a historic low.
The median age of first-time buyers is 40, reflecting affordability challenges and high mortgage rates.
Repeat buyers have a median age of 62 and often hold substantial equity.
Twenty-six percent of buyers made all-cash purchases, highlighting a division between secure buyers and entrants.

1 / 2