First-Time Homebuyer Activity Grew in Q1 2025

First-time and young homebuyers made up a sizable share of home purchasers in Q1 2025. According to technology and data provider Intercontinental Exchange’s May 2025 Mortgage Monitor Report, a record 58% of agency purchase loans were made to first-time homebuyers (FTHB). Gen-Z buyers also gained traction in more affordable states, with Federal Housing Administration loans also gaining popularity. At the same time, high mortgage rates are holding back repeat buyers. Repeat-buyer activity dropped by 31% since 2018 and 2019, while first-time buyer activity fell by just 19% during the same period.

Younger buyers are also starting to reshape the homeownership landscape. Gen Z, the oldest of whom are 28, accounted for roughly one in four FTHB mortgage originations in Q1 2025. Gen Z participation is higher in lower-cost markets, with Indiana, South Dakota, and Kentucky seeing Gen Z shares top 30% of FTHB activity. However, affordability challenges continue to constrain Gen Z participation in higher-priced coastal markets. D.C. has the lowest share of Gen Z buyers, with a mere 7% of all purchase mortgages and 11% among FTHBs. California is close behind, with Gen Z comprising 8% of purchase and 13% of FTHB loans. Read more