First-Time Buyers Are Being Edged Out of the Market

The U.S. housing market is split, with repeat homebuyers dominating the market while the share of first-time buyers sits at an all-time low. According to the National Association of Realtors’ 2025 Profile of Homebuyers and Sellers Report, affordability challenges are pushing the median age of first-time buyers to a new high.

The age of first-time homebuyers is increasing, while the share of first-time buyers continues to shrink

The media age of athe first-time homebuyeris now 40, a record high. By comparison, the typical starter home buyer in the 1980s was in their early 20s.

At the same time, the share of first-time homebuyers shrunk to 21% in 2025. Prior to 2008, the share of first-time homebuyers was 40% of all home sales and has gradually declined since.

Those who are buying homes right now are typically wealthy buyers who have owned homes in the past

As the share of first-time buyers shrinks, more repeat buyers are coming to the market with cash in hand. As a result, the share of all-cash sales has grown to a record high of 26% over the last year. Comparatively, between 2003 and 2010, fewerr than one in 10 buyers paid for homes in cash.

At the same time, the share of buyers with FHA loans has declined from 55% in 2009 to 28% in 2025.

Down payments are also getting higher

Down payments are also climbing. In 2025, the median down payment for all buyers was 19%. For first-time buyers alone, it was at 10%, and 23% for repeat buyers.