First-Time Buyers Reach Historic Lows

Insights from NAR’s 2025 Home Buyers and Sellers Report

Each year, the National Association of REALTORS® (NAR) publishes its Profile of Home Buyers and Sellers, an in-depth look at who’s buying, who’s selling, and how both sides of the transaction are evolving. The 2025 edition—covering transactions completed between July 2024 and June 2025—offers a fascinating snapshot of today’s changing housing landscape. Get the full report by clicking HERE.

🏡 First-Time Buyers Reach Historic Lows

The share of first-time home buyers fell to just 21% of all buyers this year—an all-time low. For decades, first-time buyers made up about 40% of the market, but affordability challenges, high interest rates, and tight inventory have reshaped the entry point into homeownership.

As younger households face rising rents, student loan burdens, and growing down payment hurdles, many are delaying their first purchase longer than ever before.

💰 Repeat Buyers Lead the Market

While first-timers struggle to enter, repeat buyers are driving much of today’s activity. With years of home equity behind them, these buyers have more financial flexibility—reporting a median down payment of 23%, and notably, 30% paid all cash for their new home.

This shift reflects the long-term gains of homeowners who have benefited from steady price appreciation and equity growth over the past decade.

🕰️ Sellers Staying Put Longer

The typical home seller owned their property for 11 years before deciding to move—another record high. This extended tenure suggests homeowners are more cautious about giving up low mortgage rates or are simply aging in place longer than in prior generations.

When they do sell, 91% of sellers choose to work with a real estate professional, up slightly from last year. Only 5% of transactions were FSBO (For Sale By Owner)—an all-time low—underscoring the continued value of expert guidance in navigating a complex market.

👨‍👩‍👧 Fewer Buyers with Children

One of the more striking demographic shifts: only 24% of home buyers had children under the age of 18, the lowest share ever recorded. Lower birth rates and an aging buyer pool help explain the trend, as does the growing financial pressure of raising children.

In fact, many households cited childcare expenses as a major barrier to saving for a down payment, reinforcing the interconnected nature of family finances and housing affordability.

📈 What Sellers Value Most

When it comes to working with agents, sellers consistently prioritize three key services:

These insights highlight the continued importance of REALTOR® expertise—combining pricing strategy, market knowledge, and digital marketing tools to deliver results.

🔍 The Takeaway

The 2025 NAR Profile of Home Buyers and Sellers paints a clear picture: today’s housing market is increasingly dominated by experienced homeowners with significant equity, while first-time buyers face unprecedented challenges breaking in.

As demographics evolve and economic pressures shift, REALTORS® remain at the center of helping both buyers and sellers navigate one of life’s most important financial decisions.